FIRST ON FOX: SPLC's tax-exempt status under threat after fiery Capitol Hill hearing

A ‘Fox News @ Night’ panel discusses the congressional inquiry into the Southern Poverty Law Center.

FIRST ON FOX:A left-wing nonprofit accused by the Department of Justice of secretly funding the extremism it claims to combat is facing a new threat from Capitol Hill.

Rep. Chip Roy. R-Texas, introduced legislation Wednesday that would revoke the Southern Poverty Law Center's (SPLC) tax-exempt status, ramping up pressure on the civil rights nonprofit organization amid afederal probeinto alleged financial crimes.

Themeasure’s introductioncomes after Roy vowed Tuesday to target the law center’s tax-exempt status after grilling Bryan Fair. the SPLC's interim chief executive, about its record of targeting mainstream conservative organizations during a contentious oversight hearing.

"The SPLC has built a business in smearing Christian conservatives. profiting from labeling its ideological opponents as ‘extremists’ and ‘hate groups,’" Roy said in a statement obtained by Fox News Digital. "Tax-exempt status should be reserved for charitable organizations serving the public good — not groups engaged in partisan political warfare."

Rep. Chip Roy speaks to reporters after the House passed a Department of Homeland Security funding bill at the U.S. Capitol in Washington, D.C., on April 30, 2026.(Graeme Sloan/Getty Images)

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"The Stop SPLC Act would simply revoke the SPLC’s tax-exempt status. end the special tax benefits it has enjoyed for far too long," he added.

A spokesperson for the nonprofit did not immediately respond to a request for comment.

The legislation comes as the SPLC is accused of routing $4.1 million intax-exempt donor fundsto various extremist organizations — including the Ku Klux Klan. the United Klans of America — between 2010 and 2023, using fictitious accounts and committing bank fraud to conceal the payments.

The group has insisted its informant program "saved lives," but federal prosecutors allege hate groups that received the donor money used a portion of it for recruitment purposes. to purchase materials, such as wood for cross burnings and KKK paraphernalia.

Fair has denied that the SPLC did anything wrong and largely declined to discuss the allegations Tuesday.

The law center has 501(c)(3) status as a nonprofit organization, which means financial contributions to the group are tax-deductible.

Bryan Fair, interim president. CEO of the Southern Poverty Law Center, speaks during a House Judiciary Committee hearing in Washington, D.C., on June 9, 2026.(Elizabeth Frantz/Bloomberg via Getty Images)

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Roy’s bill could threaten the group’s flush finances, as donations surged during the period it operated the now-defunct informant program.

"Advancing hatred has become quite profitable for the SPLC, as in 2024, the organization had over $829 million in assets. an endowment of approximately $730.8 million and $120.9 million in revenue," Rep. Harriet Hageman, R-Wy., said Tuesday. "The bulk of this money comes from the contributions of the SPLC donors."

Turning Point USA, the Family Research Council andMoms for Libertyare among the conservative organizations listed on the law center’s annual "hate map" database alongside neo-Nazi. White supremacist groups.

GOP lawmakers pressed Fair Tuesday about those designations and the notable omission of leftist groups.

"How many leftist anti-Jewish groups do you have listed on your website," Roy asked Fair. "How many extremist Islamic groups do you have?"

Fair did not name an organization that fit either criteria. prompting Roy to suggest that the left-wing nonprofit intentionally targets conservative Christian groups.

"So you think there's a bunch of Islamic groups that are pro-LGBTQ?" the Texas lawmaker then asked Fair. triggering laughs from the hearing room. "Is that the position of the SPLC? I just want to make sure the record is reflecting that."

"We target no group or label … because of its religion," Fair insisted.

Fair also defended the law center’s decision to designate Turning Point. a conservative youth activism powerhouse founded by the lateCharlie Kirk,as an extremist organization.

"It is our position that TPUSA expresses views. vilifies other people based on immutable characteristics, exposing them to our listing," Fair told Roy.

Turning Point USA CEOErika Kirkslammed Fair’s comments during a post on social media Tuesday.

Erika Kirk. widow of conservative activist Charlie Kirk, speaks at a Turning Point USA event at Dream City Church in Phoenix on April 17, 2026.(Jim Watson/AFP via Getty Images)

"Turning Point USA has, from the beginning, stood for open conversations. respectful debate regardless of creed or color," Kirk, the wife of the late Charlie Kirk, said. "All along, the real hate group is the SPLC, which recklessly sows hate every day with its lies."

Roy has also introduced legislation to revoke the tax-exempt status of the national Muslim advocacy group. theCouncil on American-Islamic Relations (CAIR),but the bill has since stalled in committee. Republicans have sharply criticized the nonprofit over alleged ties to terrorism.