H.R. 2338 – 501(c)(4) Reform Act of 2017

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Updated April 15, 2026 at 3:15 PM UTC

The 501(c)(4) Reform Act of 2017 would change the tax code to bar nonprofit social‑welfare groups (501(c)(4) organizations) from taking part in any political campaign. It would forbid these groups from supporting or opposing a candidate, including activities like publishing or distributing campaign‑related statements. The rule would apply to all such organizations for tax years that begin after the law is enacted.

Key Provisions

Amends Section 501(c)(4) of the Internal Revenue Code to add a new provision that prohibits 501(c)(4) entities from participating in or intervening in any political campaign, including the distribution of statements, on behalf of or against any candidate.
Specifies that the prohibition takes effect for taxable years beginning after the law’s enactment.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

May 3, 2017

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HouseIntro Referral

Introduced in House

May 3, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

May 3, 2017

Bill Text

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Introduced in HouseIssued May 3, 2017

I

115th CONGRESS

1st Session

H. R. 2338

IN THE HOUSE OF REPRESENTATIVES

May 3, 2017

Ms. Michelle Lujan Grisham of New Mexico introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to prohibit 501(c)(4) entities from participating in, or intervening in (including the publishing or distributing of statements), any political campaign.

1.

Short title

This Act may be cited as the 501(c)(4) Reform Act of 2017.

2.

501(c)(4) entities prohibited from participating in, or intervening in (including the publishing or distributing of statements), political campaigns

(a)

In general

Section 501(c)(4) of the Internal Revenue Code of 1986 is amended by adding at the end the following:

(C)

Subparagraph (A) shall not apply to an entity if the entity participates in, or intervenes in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.

.

(b)

Effective date

The amendment made by subsection (a) shall apply to taxable years beginning after the date of the enactment of this Act.