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Trump weighs order that would label some nonprofits as terrorist groups: report

The move could strip tax-exempt status from targeted groups and give the administration a faster way to punish perceived political opponents.

  • President Donald Trump is weighing an executive order that would label certain nonprofit organizations as having "terrorist" ties, according to a report Friday. This move would immediately suspend their tax-exempt status, potentially unraveling operations.
  • Spearheaded by Stephen Miller, the new White House Chief of Staff, the administration's campaign to penalize nonprofits follows Miller's earlier vow to "dismantle and take on the radical left organizations" in the country.
  • The plan hinges on Section 501 of the tax code, a provision that has never been tested in this way. It would bypass standard IRS audits and court access, allowing unilateral suspension of exemptions.
  • Though the administration signaled interest in targeting groups like the Southern Poverty Law Center and the Council on American-Islamic Relations , White House officials characterized the potential order as "speculative," leaving the full scope unclear.
  • Kevin Frankel, a former New York assistant attorney general, warned the proposal grants expansive powers to target political opponents. "Its distinct value is reaching organizations outside the foreign-terrorism and sanctions systems," Frankel explained, signaling potential federal oversight shift.
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The New Republic broke the news on Friday, November 6, 2026.
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