Bill > HR2896

This bill clarifies that tax exemptions for certain nonprofit organizations should not be considered federal financial assistance. Specifically, the bill amends Title 1 of the United States Code to state that for any federal law, rule, or regulation, tax exemptions for organizations described under sections 501(c), 501(d), and 401(a) of the Internal Revenue Code will not be classified as federal financial assistance, unless explicitly stated otherwise. These sections typically cover nonprofit organizations like charitable, educational, religious, and certain retirement or pension organizations. The legislation includes a rule of construction that explicitly states this change does not retroactively imply that tax exemptions were previously considered federal assistance. This bill aims to provide clarity and potentially protect nonprofit organizations from potential regulatory implications that might arise from being classified as recipients of federal financial assistance.

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https://www.congress.gov/bill/119th-congress/house-bill/2896/all-info