Senate Bill
Deb Fischer
Senator
Cosponsors
0
Policy Area
Summary
The SANDBOX Act would deny tax-exempt status to organizations that hold any interest in certain Chinese companies or fail to report those holdings. It aims to discourage investment in companies affiliated with the Chinese Communist Party.
Latest Action
Read twice and referred to the Committee on Finance.
Plain-English explanation of this bill
The SANDBOX Act would deny tax-exempt status to organizations that hold any interest in certain Chinese companies or fail to report those holdings. It aims to discourage investment in companies affiliated with the Chinese Communist Party.
Last updated: 12/29/2025
Congressional Research Service summary
<p> <strong>Dump Investments in Troublesome Communist Holdings Act or the DITCH Act </strong></p> <p>This bill denies an organization a tax exemption if it holds any interest in a disqualified Chinese company or fails to timely transmit required annual reports. A <em>disqualified Chinese company</em> is any corporation incorporated in China, or that invests more than 10% of its stock in certain Chinese entities, including entities controlled by the Chinese Communist Party. </p> <p>The Department of the Treasury may grant organizations a waiver of the denial of the tax exemption under specified circumstances. </p> <p>Organizations that hold any interest in a disqualified Chinese company must file annual reports describing each interest held in the company, the period during which such interest was held, and whether the organization has been granted a waiver.</p>
Main provisions of the bill
Potential effects on citizens and communities
This bill would primarily impact tax-exempt organizations like nonprofits, charities, and universities that have investments or interests in Chinese companies. If enacted, these organizations would face losing their tax-exempt status unless they divest from or report their holdings in certain Chinese firms.
Primary Policy Area
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
2750, 119th Congress (2025). "SANDBOX Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-2750