Project 2025 Plan Targets Nonprofits Aiding Immigrant Communities

Key Takeaways

• Proposed U.S. legislation on February 14, 2025, seeks to revoke 501(c)(3) tax-exempt status for nonprofits aiding undocumented immigrants.
• Project 2025 includes eliminating DACA, TPS, expanding detention capacity to 100,000 daily, and mandatory local-federal data sharing.
• Legal challenges and state opposition, like California’s SB 12, could influence implementation and counter federal immigration policy shifts.

Proposed federal legislation introduced in the United States Senate on February 14, 2025, seeks to revoke the tax-exempt status of nonprofit organizations that assist undocumented immigrants or advocate for policies that support them. This initiative represents a substantial change in U.S. immigration policy and could significantly affect the operations of organizations that support immigrant communities. The legislation forms part of a broader effort included in Project 2025, a detailed plan aimed at reshaping immigration systems in the U.S. As reported by VisaVerge.com, the proposals have raised serious questions about the implications for nonprofit organizations and the vulnerable populations they serve.

The key provisions of the proposed legislation highlight an aggressive stance. Organizations providing legal representation in deportation cases, offering direct aid such as food or shelter, or advocating for measures like sanctuary cities or expanded immigration policies, face the potential revocation of their 501(c)(3) tax-exempt status. This tax-exempt classification, under U.S. tax law, is essential for nonprofits as it allows tax-deductible donations and tax reliefs critical for operations.

Project 2025 Plan Targets Nonprofits Aiding Immigrant Communities

This legislative effort aligns with broader goals laid out in Project 2025, which was developed by conservative think tanks and policy groups. The key elements of this plan include introducing nationwide deportation mechanisms, expanding detention infrastructure to accommodate up to 100,000 individuals daily, and eliminating programs such as Deferred Action for Childhood Arrivals (DACA) and Temporary Protected Status (TPS). Such changes, if enacted, would fundamentally alter immigration policy in the United States and have wide-ranging consequences for immigrant communities.

Organizations providing direct assistance to undocumented immigrants would be among the first affected. Nonprofits offering legal services to those in deportation proceedings, sheltering vulnerable individuals, or connecting families with essential services could see their tax-exempt status stripped away. This change would gravely limit their ability to operate, impairing access to legal and social protections for undocumented populations. Advocates have noted that these services are often lifelines for individuals navigating challenging circumstances without formal immigration status.

The implications extend even further. For example, the removal of TPS, a program benefiting nearly 700,000 individuals who have lived and worked in the U.S. for years, could heavily impact immigrant communities. The potential loss of tax-exempt status for nonprofits advocating for these individuals would erode protections and greatly reduce their support networks. Similarly, Project 2025’s focus on greater information-sharing mandates between local law enforcement and federal immigration agencies—and the proposed legislation’s alignment with this goal—raises privacy concerns. For undocumented immigrants, sharing data through voter registration or motor vehicle databases could lead to more deportation risks. This type of systemic change could fracture trust between immigrant communities and local institutions, including law enforcement or public services, creating additional barriers to integration.

The legislation is being introduced against the backdrop of other federal initiatives with similar objectives. For instance, in January 2025, an executive order was issued freezing federal funds for nonprofits that provide aid to undocumented or “removable” individuals. The policy, pending review, halted funding to legal programs that help individuals prepare for deportation proceedings, such as legal orientation programs. These measures have compounded the operational challenges nonprofits face in assisting undocumented populations.

Unsurprisingly, legal resistance to these moves has already emerged. On February 15, 2025, the Amica Center for Immigrant Rights filed a lawsuit against the Department of Justice challenging the January executive order. The lawsuit, supported by immigrant rights groups, argues that cutting funding to these programs violates the First Amendment, the Appropriations Clause in the U.S. Constitution, and the Administrative Procedure Act. The outcome of such legal challenges could have a significant bearing on the implementation of these policies and whether proposed restrictions, such as revoking tax-exempt status, withstand judicial scrutiny.

Although this federal effort focuses on restricting the role of nonprofits in supporting undocumented immigrants, states are responding in varied ways. California, for example, is pursuing proactive measures designed to protect immigrant communities. The introduction of Senate Bill 12 on December 2, 2024, seeks to affirm the state’s commitment to immigrants and refugees through the creation of a dedicated Immigrant and Refugee Affairs Agency. With a structure designed to provide lasting support for immigrant integration, the proposed agency includes plans to establish an Immigrant and Refugee Integration Fund, guarantee confidentiality for personal immigrant records, and restrict the use of state resources for federal immigration enforcement. These more progressive state-level actions starkly contrast with proposed federal measures, underscoring the widening gap between state and federal approaches to immigration.

Educational institutions may also feel the ripple effects of these federal policies. As part of Project 2025’s recommendations, student loans for non-citizens or green card holders could face new restrictions. Additionally, schools offering in-state tuition to undocumented students might lose access to federal student loan programs for all of their students. These actions could further marginalize immigrant students pursuing higher education and restrict their ability to attain better educational opportunities.

The proposed legislation represents a fundamental challenge to nonprofits and immigrant communities alike. Nonprofits have long relied on their tax-exempt status to sustain operations and attract funding, enabling them to provide essential services to some of the most at-risk groups in society. Without these protections, many organizations may face operational shutdowns, leaving millions of undocumented immigrants and their families without legal, social, or humanitarian assistance. Furthermore, the potential loss of advocacy organizations focused on immigration issues could diminish public discourse and weaken civil rights protections.

The proposed data-sharing requirements between local law enforcement and federal agencies, along with stricter deportation mechanisms, also carry profound consequences. Increased surveillance and enforcement could further alienate undocumented populations, leaving them less secure and more excluded from public life. This could also discourage community cooperation with local authorities, undermining overall public safety and societal harmony. For millions of individuals who lack formal immigration status, these barriers compound vulnerabilities that they already endure.

While proponents of Project 2025 and the proposed legislation have called these measures necessary for national security and sovereignty, critics argue that such policies disregard human rights and constitutional protections. Legislative opposition is mounting in Congress, with immigrant rights advocates and state governments voicing concerns about the potential for harmful outcomes. Court rulings on pending lawsuits, including the case brought by the Amica Center, are likely to influence how swiftly these plans progress—or whether they face substantial roadblocks.

As the debate continues, it will be critical for nonprofits to assess their legal standing and prepare for possible shifts in tax laws and operational guidelines. Organizations should closely monitor developments in both federal and state legislation, while seeking tailored legal advice on compliance requirements. Stakeholders should also consider engaging in advocacy efforts to ensure that the voices of impacted communities are heard in the legislative process.

In summary, the introduction of legislation to revoke tax-exempt status for organizations supporting undocumented immigrants reflects a broader strategy to reshape immigration policy. Combined with the proposals within Project 2025, these changes could significantly alter the operations of nonprofits, disrupting the aid and advocacy structures on which immigrant communities rely. Against a backdrop of state-level resistance and ongoing legal battles, the coming months will determine the survival of these critical support systems and their ability to continue serving vulnerable populations. For more detailed information, you can visit the official IRS page on tax-exempt organizations at www.irs.gov/charities-and-nonprofits.

Learn Today

501(c)(3) Tax-Exempt Status → A U.S. tax classification allowing nonprofit organizations to receive tax-deductible donations and operate without income tax obligations.
Deferred Action for Childhood Arrivals (DACA) → A program protecting eligible undocumented immigrants brought to the U.S. as children from deportation and granting work permits.
Temporary Protected Status (TPS) → A program granting temporary legal status to individuals from nations experiencing conflict, disasters, or unsafe conditions.
Data-Sharing Mandates → Policies requiring local law enforcement to share information with federal immigration agencies, potentially increasing deportation risks for undocumented individuals.
Project 2025 → A policy plan aimed at overhauling U.S. immigration systems, emphasizing stricter enforcement, expanded detention, and reduced immigrant protections.

This Article in a Nutshell

Proposed U.S. legislation could strip tax-exempt status from nonprofits aiding undocumented immigrants, potentially crippling critical services like legal aid and shelter. Part of Project 2025, this move signals sweeping immigration policy changes. Critics warn it endangers vulnerable communities and nonprofit operations, sparking legal battles and significant debate over human rights versus national security.
— By VisaVerge.com