NSPM-7: New federal strategy for countering domestic terrorism and political violence adds enforcement risks

President Donald Trump issued a National Security Presidential Memorandum (NSPM-7) on September 25, 2025, titled “Countering Domestic Terrorism and Organized Political Violence.” Through this directive, President Trump tasked major federal agencies to “investigate, prosecute, and disrupt entities and individuals engaged in acts of political violence and intimidation” and to “disrupt financial networks that fund domestic terrorism and political violence.” According to US Secretary of the Treasury and acting Commissioner of the Internal Revenue Service (IRS) Scott Bessent, the Treasury Department and IRS will leverage their investigative and financial tools to “follow the money” to map such networks and the financial flows of organizations. NSPM-7 does not create new legal authority but signals the aggressive use of existing statutes in a new context.

The White House Fact Sheet that accompanied the issuance of NSPM-7 provides some indication of the type of actions expected to be enforcement priorities, stating that the “approach will focus on all aspects of the organized strategy that results in political violence and intimidation, including radicalization, recruitment, funding mechanisms, non-governmental organization involvement, related financial crimes, and the ultimate acts of political violence and intimidation themselves.”

According to press reports, US Attorney General Pam Bondi issued a related memo on December 4, 2025 that, among other things, ordered federal prosecutors and law enforcement to prioritize investigating and prosecuting potential crimes involving “extremist groups”  (including applicable “tax crimes”) and instructed the US Federal Bureau of Investigation (FBI) to coordinate with law enforcement partners to compile a list of entities possibly related to domestic terrorism. The memo also apparently directs the FBI to adjust its tip line, including by offering cash rewards, for reporting suspected acts of domestic terrorism.

As this new enforcement priority takes shape, institutions – particularly tax-exempt organizations – may consider taking proactive measures to prevent investigative scrutiny of their operations and affiliations under this new initiative or from Congress. We anticipate that identified institutions and individuals may be able to effectively challenge and defend against novel aspects of this enforcement effort using multiple strategies – not only by employing public policy arguments, but also strategies available in criminal, congressional, and tax investigations.

Below, we summarize key provisions of NSPM-7 and provide considerations for risk mitigation.

Key provisions of NSPM-7

• Expanded investigative and enforcement authority: FBI Joint Terrorism Task Forces (JTTFs) are directed to lead a national strategy focused on the infrastructure behind political violence, including recruitment, radicalization, and financial support networks. NSPM-7 also requires the US Department of Justice (DOJ) to “prosecute all Federal crimes related to organized political violence” and issue guidance governing enforcement priorities and identifying fact patterns related to political violence, including acts such as riots, property crimes, and organized doxxing campaigns “to identify and prevent potential violent activity.” NSPM-7 also directs investigation of violations of the Foreign Agents Registration Act (FARA) and directs the prioritization of charges including various terrorism statutes. These national security tools – which have traditionally been used to counter international terrorism – can carry significant criminal penalties.


• IRS and Treasury oversight: The NSPM-7 specifically tasks the Secretary of the Treasury and IRS Commissioner with identifying and disrupting financial networks that support domestic terrorism or fund political violence. As part of this mandate, the Treasury Department is expected to leverage its Terrorism and Financial Intelligence (TFI) components to map the financial flows and donor networks of subject organizations. Reforms are also anticipated within the IRS Criminal-Investigative Division (IRS-CI) to enable the division to more easily scrutinize tax-exempt entities that may be indirectly involved in funding or facilitating such activities. Organizations that raise red flags or are charged with potential violations may face forfeiture of their tax-exempt status or be referred to DOJ for further investigation and/or prosecution.


• Designation powers: The Attorney General is authorized to recommend groups for designation as “domestic terrorist organizations,” which, unlike foreign terrorist organizations, is not a formal legal designation but may have legal, reputational, and other practical implications for affiliated nonprofits or advocacy organizations. When an organization is designated as a foreign terrorist organization, there are a host of consequences, including that material support to the organization becomes a federal crime, non-citizen members are barred from entering the US, and the organization’s assets held by US banks are frozen.


• Federal prioritization: Domestic terrorism is designated a “National Priority Area,” allowing federal agencies such as DOJ and the Department of Homeland Security (DHS) to direct resources toward prevention and enforcement efforts, including those involving nonprofit entities.

Congressional oversight, investigative risk, and tax scrutiny

In parallel with executive action, key congressional committees have signaled increased interest in the role of nonprofit organizations in political advocacy and public mobilization. These committees may initiate investigations or hearings focused on:

• Use of tax-exempt status by organizations engaged in politically sensitive or disruptive activities


• Financial transparency and donor affiliations, especially where funding may intersect with groups under federal scrutiny, and


• Coordination with designated or suspected domestic extremist groups, even if indirect or incidental.

Organizations should be aware that congressional inquiries may involve subpoenas, public testimony, and reputational exposure, particularly if activities are perceived to align with the types of campaigns described in NSPM-7.

US authorities may also leverage parallel tax-focused investigations using civil and criminal enforcement tools to scrutinize organizations, particularly those claiming tax-exempt status. The potential enforcement toolkit can similarly include grand jury subpoenas and more aggressive investigative tools such as search warrants, dawn raids, and witness interviews.

Practical considerations and opportunities for risk mitigation under NSPM-7

Organizations may take proactive steps to assess and limit possible exposure, which may include the following actions:

1. Conducting a risk audit of advocacy activities: Review public-facing campaigns, educational initiatives, and policy advocacy efforts to ensure alignment with the organization’s exempt purpose and IRS guidelines.


2. Evaluating financial relationships and grantmaking: Scrutinize funding sources and recipients for potential exposure to groups or individuals that may be subject to federal or congressional scrutiny. Ensure robust documentation and vetting procedures are in place.


3. Reviewing governance and oversight protocols: Confirm that internal oversight mechanisms are sufficient to monitor compliance with federal law.


4. Strengthening internal controls and recordkeeping: Ensure that financial records, donor communications, and programmatic documentation are complete, accurate, and readily accessible in the event of an audit or subpoena.


5. Ensuring facilities have law enforcement protocols: Evaluate existing policies related to interactions with law enforcement to identify how facilities should respond to law enforcement inquiries (“knock and talks”), document requests (including administrative or grand jury subpoenas), or search warrants (“dawn raids”).


6. Preparing for congressional inquiry scenarios: Develop protocols for responding to congressional requests, including designating legal points of contact, preparing public statements, and training staff on compliance and confidentiality.


7. Monitoring designation risks: Stay informed about developing federal designation activity and enforcement trends that may affect affiliated or partner organizations. Consider proactive distancing or disclaimers where appropriate.


8. Developing a public affairs and crisis management strategy: Establish a communications plan and coordinate with external counsel and public relations professionals to manage media inquiries, stakeholder messaging, and rapid response scenarios in the event of law enforcement or congressional scrutiny.

How DLA Piper can help

The following DLA Piper practice groups are available to assist in matters relating to NSPM-7:

• White Collar, Investigations, and Government Enforcement practice: DLA Piper’s global team represents organizations and individuals in high-stakes government investigations, enforcement actions, and internal reviews. We advise on compliance, defense strategy, and managing civil, criminal, and regulatory risk across jurisdictions.


• Government Affairs practice: DLA Piper’s bipartisan team of former senior government officials and policy advisors helps clients navigate complex legislative and regulatory environments, engage with policymakers, and shape public policy outcomes.


• Congressional Investigations practice: DLA Piper counsels clients facing inquiries from congressional committees, including subpoena response, hearing preparation, and reputational risk management. Our team includes former congressional staff and legal counsel who can assist in oversight proceedings.


• Tax practice: DLA Piper regularly represents clients in significant criminal tax investigations and prosecutions involving the DOJ, IRS, and US Attorneys’ Offices around the country, including matters involving tax-exempt organizations and First Amendment issues.

If you have questions about how your organization might take proactive steps to prepare, please contact our team. We are available to support your organization in navigating this evolving enforcement landscape.