The Trump administration is reportedly considering an executive order that could strip certain nonprofit organizations of their tax-exempt status over alleged ties to terrorism, according to a report by The Wall Street Journal. The proposal, which has been under development for months, remains under review, and officials have not determined which organizations could be targeted or how many might be affected.

The potential order would allow the government to suspend an organization's tax-exempt status immediately. Under the standard IRS process, the agency generally conducts a detailed audit, provides formal notice, and allows the nonprofit to challenge the decision in court.

The administration has been working with IRS specialists to assess the legal and practical implications of the proposal. Officials have also reviewed nonprofit bank records and other documents to identify organizations they believe may be involved in terrorist activity or providing support to groups engaged in it, the Journal reported.

The effort follows a national security memorandum President Donald Trump previously signed directing the IRS to ensure that tax-exempt organizations are not involved in domestic terrorism or political violence. Treasury Secretary Scott Bessent said in July that the administration was examining whether charitable organizations had been used to facilitate foreign influence or finance violence.

Nine organizations have already had their tax-exempt status suspended over alleged terrorist ties, according to the Journal. The administration has not publicly identified the groups in connection with the reported executive order discussions.

The proposal also reflects broader efforts by senior administration officials to investigate organizations they believe have connections to terrorist networks. During interagency meetings late last year, White House Deputy Chief of Staff Stephen Miller questioned why more investigations were not being pursued into groups such as antifa, which he believed had ties to terrorist organizations.

Trump subsequently designated antifa as a domestic terrorist organization through an executive order in September 2025. The White House had previously said it was not drafting or considering any comparable action targeting nonprofit tax exemptions.

A White House official cautioned that discussions about a possible executive order remained speculative. The Treasury Department and IRS did not respond to the Journal's requests for comment.

The proposal could significantly change how the federal government handles nonprofit organizations suspected of supporting terrorism, particularly if it allows tax-exempt status to be suspended before the traditional IRS review process is complete.