What does Preamble of S 3942 do?

This bill aims to amend the Internal Revenue Code of 1986 The amendment targets 501(c)(3) organizations as fiscal sponsors It establishes liability for these organizations regarding funding use

What does SHORT TITLE. of S 3942 do?

This Act is formally titled the ``Stop Proxy Organizations Nurturing Subversive Operations and Riots Act''.

What does LIABILITY OF TAX-EXEMPT FISCAL SPONSORS FOR SPONSORED of S 3942 do?

This section amends the Internal Revenue Code of 1986 to add liability for tax-exempt fiscal sponsors Fiscal sponsors are liable for criminal and civil activities related to sponsored activities A covered activity includes aiding terrorism, injuring persons exercising constitutional rights, and preventing interstate commerce Fiscal sponsorship is defined as an organization receiving and administering funds on behalf of a non-exempt project An organization is presumed responsible for ensuring funds are used in compliance with laws and regulations

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SPONSOR Act — S. 3942

Last updated: 2/26/2026 · Introduced: 2/26/2026

Author: Ted Cruz (R-TX)

TL;DR (AI)

This bill amends the Internal Revenue Code to hold 501(c)(3) organizations liable for criminal and civil activities undertaken by projects they sponsor financially.
Fiscal sponsorship is defined as an organization receiving and administering funds on behalf of a non-exempt project.
Covered activities include aiding terrorism, injuring individuals exercising constitutional rights, and obstructing interstate commerce.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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