FENCE Act

The FENCE Act amends the tax code to deny 501(c)(3) tax-exempt status to organizations that knowingly provide financial assistance, benefits, or material support to individuals unlawfully present in the U.S. It directly affects nonprofits, community foundations, and religious organizations that may assist undocumented immigrants. The key provision adds a new requirement that organizations must not engage in a "pattern or practice" of such support, without mandating proof of citizenship or requiring religious groups to violate their beliefs. This change would take effect upon the bill's enactment, altering how tax-exempt status is maintained for qualifying organizations.