Treasury chief leads Trump-backed push to strip tax-exempt status from progressive NGOs

Treasury Secretary Scott Bessent is leading a Trump administration initiative to audit and potentially revoke the tax-exempt status of several progressive nonprofits, including George Soros’ Open Society Foundations, the Southern Poverty Law Center and the Council on American-Islamic Relations. The effort draws on a 2025 executive order that authorizes action against charities deemed to have a “substantial illegal purpose,” allowing the IRS to levy fines or strip 501(c)(3) status.

Draft policy documents outline possible back-payment of taxes—estimated at $165 million for the three groups combined—and civil penalties. The crackdown also targets other left-aligned groups such as the Private Equity Stakeholder Project, Athena Coalition, MediaJustice and the Strategic Organizing Center and its parent SEIU. Protect Democracy has sued the Treasury and IRS, claiming the campaign is a partisan witch hunt that infringes on First Amendment protections. While some officials push to finalize the measures before the upcoming midterm elections, others warn that high-profile targets could spark extensive litigation and delay action against other groups.