Rep. Chip Roy, R-Texas, introduced legislation Wednesday that would revoke the Southern Poverty Law Center's tax-exempt status, escalating congressional pressure on the civil rights nonprofit amid an ongoing federal investigation into alleged financial crimes.
The bill, called the "Stop SPLC Act," follows a contentious oversight hearing Tuesday where lawmakers grilled Bryan Fair, the organization's interim chief executive, about its practice of designating conservative organizations as extremist entities alongside hate groups such as neo-Nazis and White supremacist organizations.
What the Right Is Saying
Republicans contend that SPLC has abused its nonprofit status by targeting mainstream conservative organizations while failing to label leftist groups with similar tactics. The legislation targets what Roy called a group engaged in "partisan political warfare" disguised as charitable work.
"The SPLC has built a business in smearing Christian conservatives and profiting from labeling its ideological opponents as 'extremists' and 'hate groups,'" Roy said in a statement. "Tax-exempt status should be reserved for charitable organizations serving the public good — not groups engaged in partisan political warfare."
Rep. Harriet Hageman, R-Wyo., pointed to SPLC's financial records during Tuesday's hearing. "Advancing hatred has become quite profitable for the SPLC, as in 2024, the organization had over $829 million in assets and an endowment of approximately $730.8 million and $120.9 million in revenue," she said. "The bulk of this money comes from the contributions of the SPLC donors."
Turning Point USA CEO Erika Kirk rejected Fair's characterization of her organization Tuesday on social media: "All along, the real hate group is the SPLC, which recklessly sows hate every day with its lies." Kirk noted that Turning Point has advocated for respectful debate regardless of creed or color.
What the Left Is Saying
Civil rights advocates have denounced the Republican effort as an attempt to silence an organization that documents far-right extremism. Progressives argue that targeting SPLC's nonprofit status sets a dangerous precedent that could be used against any group deemed politically inconvenient by those in power.
Democratic defenders of the organization point out that SPLC has operated for decades as a respected civil rights monitor, tracking legitimate hate groups and providing legal advocacy for marginalized communities. They contend that the DOJ investigation centers on alleged misconduct by individual actors within the organization rather than the nonprofit's core charitable mission.
SPLC's interim CEO Bryan Fair declined to discuss the specific allegations during Tuesday's hearing but stated: "We target no group or label ... because of its religion." The organization has maintained that its informant program, which is now defunct, was designed to infiltrate potentially dangerous groups and prevent violence.
Fair also defended designating Turning Point USA as an extremist organization, telling Roy: "It is our position that TPUSA expresses views and vilifies other people based on immutable characteristics, exposing them to our listing."
What the Numbers Show
Federal prosecutors allege that SPLC routed $4.1 million in tax-exempt donor funds to extremist organizations between 2010 and 2023, including the Ku Klux Klan and the United Klans of America. The DOJ claims the organization used fictitious accounts and committed bank fraud to conceal the payments.
According to financial disclosures cited by Hageman, SPLC reported approximately $829 million in total assets as of 2024, with an endowment of roughly $730.8 million and annual revenue near $120.9 million. As a 501(c)(3) nonprofit organization, contributions to SPLC are tax-deductible for donors.
The organization's "hate map" database lists conservative organizations including Turning Point USA, the Family Research Council, and Moms for Liberty alongside neo-Nazi and White supremacist groups.
The Bottom Line
SPLC has not yet responded publicly to the legislation. The bill faces an uncertain path through Congress, where similar measures targeting nonprofit organizations have historically faced constitutional questions about viewpoint discrimination under the First Amendment.
The DOJ investigation remains ongoing. If the allegations are proven, they could result in criminal charges against individuals within the organization but would not automatically affect its tax-exempt status without congressional action.
Legal experts note that revoking a nonprofit's 501(c)(3) status based on political viewpoints rather than demonstrated financial misconduct would likely face significant legal challenges. Roy has also introduced comparable legislation targeting the Council on American-Islamic Relations, which stalled in committee.