FACT Calls for Investigation into Standing for Texas for Potential Federal Tax Code Violations

Evidence Shows Organization Spent Over $5 Million on Non-Exempt Political Activities

Washington, D.C. — March 17, 2026 — Today, the non-partisan ethics watchdog, the Foundation for Accountability and Civic Trust (FACT), filed a complaint requesting the Internal Revenue Service (IRS) investigate Standing for Texas for violating federal tax laws by registering as a tax exempt 501(c)(4) under Internal Revenue Code when it appears the organization exists primarily to support the Hunt for Senate campaign rather than to advance any permissible exempt purpose.

Certain organizations are exempt from federal taxation under section 501(c)(4) because they are “not organized for profit but operated exclusively for the promotion of social welfare.” Although these organizations may engage in some activity supportive to candidates for public office, this activity cannot constitute its primary activity. This rule exists because “support of a candidate for public office necessarily involves the organization in the total political attitudes and positions of the candidate,” and the promotion of a single person’s campaign does not promote social welfare. If a 501(c)(4) organizations' spending becomes so substantial that it becomes its primary activity, the organization “would instead become [a] 527” political organization that is subject to campaign finance registration, reporting and donor disclosure requirements.

Standing for Texas' status as a 501(c)(4) has not yet been confirmed; however, media reports have referred to it as a “social welfare” organization, a term commonly used to refer to a 501(c)(4).

Since its creation in March 2025, Standing for Texas has spent $4,413,161.00 to produce and distribute five television advertisements touting various aspects of Rep. Wesley Hunt’s biography. Although none of the advertisements expressly reference the Republican U.S. Senate primary election in which Hunt ran as a candidate, each ad portrayed Hunt in a positive light, and one ad (“Thank Him”) directly contrasted Hunt with one of his primary opponents Senator John Cornyn. Importantly, Standing for Texas only became engaged in supporting Mr. Hunt as the Republican primary election drew near, and the organization has never engaged in previous support of Mr. Hunt, nor has it produced any advertisements praising any other elected official.  

In addition to the ads, Standing for Texas recently transferred $690,000.00 in three installments to Fighting for Texas, a federal Super PAC supporting Hunt’s campaign. Within days Fighting for Texas began airing and ad that nearly identical to the latest advertisement by Standing for Texas.

The $690,000.00 transferred to Fighting for Texas indisputably constitutes “political” activity because the recipient is a 527 political committee that exists primarily for political purposes. Moreover, the fact that the Super PAC was able to copy-and-paste an entire 501(c)(4) “issue ad” and repurpose it as a political advertisement with a simple tweak to the disclaimer demonstrates that each of Standing for Texas’s television advertisements should count towards the organization’s total political spending.

Standing for Texas has spent at least $5,103,151.00 on political activity. If Standing for Texas is to comply with federal law governing tax-exempt organizations which requires it spend at least 51% on non-political activities, Standing for Texas would have needed to spend a minimum of $5,311,453.29 on activities that promote "social welfare." There is no evidence such spending has taken place.

"Campaign finance and tax laws exist to promote transparency and fairness in our elections process. The public facing actions of Standing for Texas, namely spending $5 million for advertisements to affect a political primary race, do not appear by any means to constitute a tax-exempt group. We hope the IRS quickly acts to investigate this group and renders judgment based on where the facts lead," said Kendra Arnold, Executive Director of FACT.

A full copy of the complaint can be found HERE.

FACT is a nonprofit organization promoting accountability, ethics, and transparency in government and civic arenas. For more on FACT, visit: http://www.factdc.org

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