Bills of Congress by U.S. Congress

S.497 - Fixing Exemptions for Networks Choosing to Enable Illegal Migration Act; FENCE Act (119th Congress)

Summary

The FENCE Act (S.497) proposes amending the Internal Revenue Code of 1986, specifically Section 501(c)(3), which pertains to tax-exempt organizations. The amendment would deny 501(c)(3) status to organizations that provide support to individuals they know or reasonably should know are unlawfully present in the United States. The bill includes a provision that it should not be construed to require proof of citizenship or verification of immigration status, nor require religious organizations to violate their beliefs.

Expected Effects

If enacted, the FENCE Act would change the criteria for non-profit organizations to maintain their tax-exempt status. Organizations providing assistance to undocumented immigrants could lose their 501(c)(3) status, potentially impacting their funding and operations. This could lead to a reduction in services available to undocumented immigrants.

Potential Benefits

  • Could reduce incentives for illegal immigration by limiting support networks.
  • May ensure that taxpayer dollars are not indirectly supporting activities deemed unlawful.
  • Could free up resources for organizations focusing on legal immigration or other charitable causes.
  • May strengthen border security by reducing the attractiveness of the US to illegal immigrants.
  • Could lead to a fairer system where resources are directed towards citizens and legal residents.

Potential Disadvantages

  • Could negatively impact vulnerable populations by reducing access to essential services.
  • May create a chilling effect on organizations providing humanitarian aid, even to those with unclear immigration status.
  • Could disproportionately affect religious organizations that provide assistance based on faith-based principles.
  • May increase social tensions and discrimination against immigrant communities.
  • Could lead to increased costs for government agencies if non-profits are no longer providing certain services.

Constitutional Alignment

The bill's alignment with the Constitution is complex. While Congress has the power to set tax policy, the bill could potentially infringe upon the First Amendment's guarantee of religious freedom if it unduly burdens religious organizations providing aid to undocumented immigrants. The bill explicitly states that it should not be construed to require a religious organization to act in violation of its religious beliefs, which attempts to mitigate this concern. However, the practical application of this provision could be subject to legal challenges. Additionally, the equal protection clause of the Fourteenth Amendment could be invoked if the law is deemed to unfairly target specific groups.

Impact Assessment: Things You Care About

This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).