Trump Weighs Order Labeling Nonprofits as Terrorist-Linked

A draft executive order would use Section 501(p) to strip targeted nonprofits of tax-exempt status without standard IRS procedures.

Updated on Nov. 7, 2026 in Terrorism

Trump Weighs Order Labeling Nonprofits as Terrorist-Linked

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Should the president be able to strip nonprofits of tax-exempt status without normal legal process?

The Trump administration is preparing an executive order that would designate certain nonprofits as having terrorist ties. Officials have spent months preparing the order, which has not been finalized.

Why it matters

Section 501(p) has never been tested in this way, and a designation would automatically suspend an organization's tax exemption without audits, formal notice, or normal IRS procedures. Designated groups would owe taxes on net income while contesting the label in court, and donations to them would no longer be deductible.

The executive order remains unsigned and officials have not publicly named the nonprofits under consideration. Officials have consulted IRS experts and reviewed nonprofits' bank records to help choose targets, and the Treasury Department and IRS did not respond to requests for comment.

The players

Stephen Miller

White House deputy chief of staff who pressed officials in interagency meetings on nonprofits he believed were linked to antifa.

Internal Revenue Service

The federal agency responsible for administering tax exemptions under Section 501 and consulted on target selection for the proposed order.

Treasury Department

The federal department overseeing the IRS, which did not respond to requests for comment on the proposed order.

The details

Officials have consulted IRS experts and reviewed nonprofits' bank records, and Stephen Miller pressed officials in interagency meetings late last year on nonprofits he believed were linked to antifa. A White House official dismissed talk of a potential order as speculative, while designated groups could contest the label in court, where some government evidence could be classified.

Late 2025: Interagency meetings where Miller pressed on antifa-linked nonprofits
Months before November 6, 2026: Officials began preparing the executive order
November 6, 2026: The Wall Street Journal reported the plan

Legal Context

Section 501(p) lets the president label organizations as supporting terrorism through an executive order and has never been used this way. The proposed use would test how far that tax provision reaches against nonprofits that would otherwise be shielded by standard IRS audit and notice procedures.

If finalized, the order would immediately affect any targeted nonprofit's tax-exempt status and make donations to it non-deductible for donors. Designated groups would owe taxes on net income while the label is contested in court.

The takeaway

Tax-exempt status for nonprofits could be suspended through an executive designation rather than standard IRS procedures if the order is signed. Readers should watch whether the administration finalizes the order and how courts respond to any challenge.