Treasury Secretary Scott Bessent Reviews Tax Status of Progressive Nonprofits

Treasury Secretary Scott Bessent and the Internal Revenue Service are preparing to review the tax-exempt status of several prominent progressive organizations. The investigation targets the Open Society Foundations, the Council on American-Islamic Relations (CAIR), and the Southern Poverty Law Center (SPLC), following a presidential executive order aimed at nonprofits engaged in a substantial illegal purpose.

The Treasury Department is investigating whether these entities functioned as conduits for illicit finance, foreign influence, or the enablement of violence. Specific allegations include the Open Society Foundations funding Antifa-aligned activism, CAIR maintaining relationships with Hamas, and the SPLC funneling donor money to violent extremist groups.

If the Internal Revenue Service determines the legal threshold for revocation has been met, the organizations could lose their 501(c)(3) status. Such a move would leave the entities liable for substantial back-tax payments and civil penalties.