S T A T E O F N E W Y O R K
________________________________________________________________________
11304
I N A S S E M B L Y
May 11, 2026
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Blumencranz)
-- read once and referred to the Committee on Governmental Operations
AN ACT to amend the executive law, the state finance law and the tax
law, in relation to increasing transparency and accountability of
organizations engaging in political activities and supporting terror-
ism
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "no tax dollars for terror act".
§ 2. Legislative intent. The legislature finds that organizations
operating in the state of New York, whether for-profit, not-for-profit,
or politically affiliated, must not misuse public funds or abuse their
tax-exempt status to support terrorism or manipulate public discourse
through undisclosed paid protestors. This legislation is necessary to
increase transparency, protect taxpayer resources, and ensure New York
does not inadvertently fund or subsidize organizations engaged in
subversive, antisemitic, or terror-sympathizing activities.
§ 3. The executive law is amended by adding a new section 76 to read
as follows:
§ 76. DISCLOSURE OF PAID PROTESTORS. 1. ANY INDIVIDUAL WHO IS COMPEN-
SATED TO PARTICIPATE IN A PUBLIC DEMONSTRATION, PROTEST, OR RALLY IN THE
STATE OF NEW YORK SHALL, WHILE ENGAGING IN SUCH ACTIVITY, WEAR CONSPICU-
OUS IDENTIFICATION INDICATING THEY ARE A "PAID PROTESTOR".
2. THE SPONSOR OR EMPLOYER OF SUCH INDIVIDUAL SHALL:
(A) FILE A DISCLOSURE WITH THE ATTORNEY GENERAL WITHIN FIVE DAYS PRIOR
TO THE DEMONSTRATION INDICATING THE DATE, LOCATION, ESTIMATED NUMBER OF
PAID PARTICIPANTS, AND IDENTITY OF THE EMPLOYING ORGANIZATION; AND
(B) PROVIDE VISIBLE SIGNAGE AT THE EVENT CLEARLY NOTING THE PRESENCE
OF COMPENSATED PARTICIPANTS.
3. ANY ORGANIZATION FAILING TO COMPLY WITH THIS SECTION SHALL BE
SUBJECT TO A CIVIL PENALTY OF UP TO TEN THOUSAND DOLLARS PER VIOLATION,
AND REPEAT VIOLATIONS MAY RESULT IN THE REVOCATION OF STATE GRANTS OR
CONTRACTS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15765-01-6
A. 11304 2
4. THE ATTORNEY GENERAL SHALL MAINTAIN A PUBLIC REGISTRY OF ORGANIZA-
TIONS EMPLOYING PAID DEMONSTRATORS.
§ 4. The executive law is amended by adding a new section 77 to read
as follows:
§ 77. MANDATORY DUTIES OF THE ATTORNEY GENERAL REGARDING TERRORIST-
SUPPORTING ORGANIZATIONS. 1. THE ATTORNEY GENERAL SHALL, WITHIN SIXTY
DAYS OF RECEIVING CREDIBLE INFORMATION OR A FEDERAL DESIGNATION THAT AN
ORGANIZATION HAS PROVIDED MATERIAL SUPPORT OR RESOURCES TO A TERRORIST
ORGANIZATION AS DEFINED UNDER 18 U.S.C. § 2339B, MAKE A FORMAL DETERMI-
NATION OF INELIGIBILITY FOR PURPOSES OF SECTION FIFTY-THREE-E OF THE
STATE FINANCE LAW AND SECTION TWENTY-SEVEN OF THE TAX LAW.
2. THE ATTORNEY GENERAL SHALL NOT EXERCISE DISCRETION TO WITHHOLD SUCH
DETERMINATION BASED ON POLITICAL, IDEOLOGICAL, OR POLICY CONSIDERATIONS,
AND FAILURE TO ACT WITHIN THE PRESCRIBED TIMEFRAME SHALL BE DEEMED A
DERELICTION OF DUTY AND SUBJECT TO JUDICIAL REVIEW AND APPROPRIATE
MANDAMUS RELIEF.
3. IN MAKING SUCH DETERMINATIONS, THE ATTORNEY GENERAL SHALL BE BOUND
BY:
(A) ANY DESIGNATION BY THE UNITED STATES SECRETARY OF STATE, SECRETARY
OF THE TREASURY, OR ATTORNEY GENERAL OF AN ORGANIZATION AS A TERRORIST
ORGANIZATION OR AS HAVING PROVIDED MATERIAL SUPPORT TO SUCH;
(B) ANY FINDING BY A FEDERAL AGENCY OR COURT THAT AN ORGANIZATION
MEETS THE CRITERIA OF A TERRORIST-SUPPORTING ORGANIZATION; AND
(C) ANY DETERMINATION UNDER FEDERAL TAX LAW (INCLUDING IRC §
501(P)(8)) RELATED TO TERRORIST SUPPORT.
4. THE ATTORNEY GENERAL SHALL PUBLISH AND MAINTAIN A PUBLICLY ACCESSI-
BLE REGISTRY OF ALL ORGANIZATIONS DEEMED INELIGIBLE UNDER THESE
PROVISIONS, AND SUCH REGISTRY SHALL BE UPDATED QUARTERLY.
§ 5. The state finance law is amended by adding a new section 53-e to
read as follows:
§ 53-E. PROHIBITION ON THE DISBURSEMENT OF STATE FUNDS TO TERRORIST-
SUPPORTING ORGANIZATIONS. 1. NO DISCRETIONARY FUNDS, GRANTS, GENERAL
FUND ALLOCATIONS, OR OTHER APPROPRIATIONS SHALL BE AWARDED TO ANY ORGAN-
IZATION THAT, DURING THE PRECEDING TWENTY YEARS, HAS PROVIDED MATERIAL
SUPPORT, RESOURCES, ADVOCACY, OR PROMOTION FOR ANY TERRORIST ORGANIZA-
TION AS DEFINED IN FEDERAL LAW (18 U.S.C. § 2339B) OR DESIGNATED BY THE
UNITED STATES SECRETARY OF STATE OR SECRETARY OF THE TREASURY.
2. THE DIVISION OF THE BUDGET SHALL MAINTAIN A LIST OF INELIGIBLE
ORGANIZATIONS BASED ON DETERMINATIONS MADE BY THE ATTORNEY GENERAL.
3. STATE AGENCIES AND MUNICIPALITIES ARE PROHIBITED FROM CONTRACTING
WITH OR ISSUING ANY FORM OF FUNDING TO ORGANIZATIONS APPEARING ON THIS
LIST.
4. WAIVERS OR EXEMPTIONS ARE STRICTLY PROHIBITED.
§ 6. Section 27 of the tax law is REPEALED and a new section 27 is
added to read as follows:
§ 27. TERMINATION OF TAX-EXEMPT STATUS OF TERRORIST-SUPPORTING ORGAN-
IZATIONS. 1. THE COMMISSIONER SHALL REVOKE THE TAX-EXEMPT STATUS OF ANY
ORGANIZATION DETERMINED BY THE ATTORNEY GENERAL TO HAVE PROVIDED MATERI-
AL SUPPORT TO A TERRORIST ORGANIZATION WITHIN THE MEANING OF 18 U.S.C. §
2339B.
2. THE COMMISSIONER SHALL COORDINATE WITH FEDERAL AUTHORITIES AND
UTILIZE DETERMINATIONS UNDER SECTION 501(P)(8) OF THE INTERNAL REVENUE
CODE, AS AMENDED BY H.R. 6408 (118TH CONGRESS), AS THE BASIS FOR REVOCA-
TION.
A. 11304 3
3. AFFECTED ORGANIZATIONS SHALL BE NOTIFIED AND MAY APPEAL WITHIN
SIXTY DAYS, BUT TAX-EXEMPT PRIVILEGES SHALL BE SUSPENDED DURING THE
PENDENCY OF SUCH APPEAL.
4. ORGANIZATIONS THAT LOSE TAX-EXEMPT STATUS UNDER THIS SECTION SHALL
BE INELIGIBLE TO REAPPLY FOR STATE OR LOCAL TAX EXEMPTIONS FOR A PERIOD
OF TEN YEARS.
5. THE DEPARTMENT SHALL MAINTAIN A LIST OF REVOKED ORGANIZATIONS AND
POST IT ON THE DEPARTMENT'S WEBSITE.
§ 7. Severability. If any provision of this act, or any application of
any provision of this act, is held to be invalid, that shall not affect
the validity or effectiveness of any other provision of this act, or of
any other application of any provision of this act, which can be given
effect without that provision or application; and to that end, the
provisions and applications of this act are severable.
§ 8. This act shall take effect immediately.