A potentially troubling Earth Day for environmental organizations White House officials are preparing executive orders that could revoke the tax-exempt status of certain environmental nonprofits, potentially launching an Earth Day confrontation against groups perceived as obstacles to President Donald Trump's efforts to increase domestic production of oil, gas, and coal.
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This initiative, as described by sources close to the situation, coincides with other actions by the administration aimed at using the U.S. tax code or federal funding to target groups opposing the president's policies. It follows years of scrutiny from congressional Republicans, who have alleged that prominent environmental organizations and other advocacy groups are linked to foreign governments and receive funding from China. More extensive measures have been considered, including possible investigations into the activities of environmental nonprofits and modifications that could limit funding for non-U.S. organizations classified as charities, according to confidential sources. These initiatives might extend beyond environmental groups to include nonprofits addressing various issues, as well as philanthropic foundations. Trump has previously called for Harvard University to lose its tax-exempt status, suggesting that the Internal Revenue Service should categorize it as a "political entity" after the institution declined the administration's requests for changes. On Thursday, the president indicated that the White House could take further actions by revoking the tax-exempt status of additional organizations, stating that his administration will soon be "making some statements" about groups that are "so rich, so strong, and then they go so bad."
The president specifically mentioned the nonprofit watchdog group Citizens for Responsibility and Ethics in Washington, claiming that "the only charity they have is going after Donald Trump." In a separate hearing last year, congressional Republicans highlighted groups such as Code Pink, the League of Conservation Voters, and the Natural Resources Defense Council for examination.
Any effort to revoke tax-exempt status from major environmental organizations would likely face legal challenges, and it remains uncertain whether such measures would withstand scrutiny in court. Nonetheless, such actions would pose a significant threat to nonprofit environmental advocacy, which for decades has played a crucial role in promoting limits on toxic substances, air pollution, and greenhouse gas emissions. This could also undermine a climate movement that has urged U.S. states and institutions worldwide to reduce their greenhouse gas emissions and transition to renewable energy sources. The Internal Revenue Service is responsible for determining the loss of tax-exempt status for nonprofits, and its enforcement of federal tax laws is expected to remain independent of political influences. Nonprofits can lose their tax-exempt designation if they engage in political campaign activities, are heavily involved in lobbying, generate excessive unrelated income, or fail to submit annual returns to the IRS. An executive order specifically targeting environmental groups could be among the initiatives prepared for Earth Day next Tuesday, according to insiders. However, the timing and specifics of the orders may evolve as different factions within the administration discuss the details.