FIFA Secures Federal Tax Exemption Breakthrough for All 48 World Cup 2026 Teams After US Treasury Talks

All 48 national associations competing at the 2026 FIFA World Cup are expected to receive exemption from US federal taxes following intensive negotiations between FIFA and the US Treasury, a development that could save participating federations millions of dollars ahead of this summer’s tournament.

Following months of lobbying, FIFA has received an undertaking from the Treasury that national associations can apply for tax-exempt status under section 501(c)(3) of the Internal Revenue Code. While approval is not guaranteed, FIFA has been reassured that applications are likely to succeed provided federations follow the correct procedures. The key eligibility criteria under section 501(c)(3) require that an organisation does not confer financial benefits on private shareholders and refrains from political activity — conditions that national governing bodies are expected to meet without difficulty.

Despite the federal breakthrough, many associations will still be liable for state and city taxes on their World Cup earnings. The talks with the Treasury have also involved Donald Trump’s World Cup taskforce, according to reports. FIFA declined to comment on the negotiations, with a source describing the situation as ongoing.

The development offers meaningful financial relief to federations that had raised serious concerns about the cost of participation. As The Guardian reported last month, numerous countries feared they could lose money on the tournament even if they advanced deep into the competition, with a combination of tax liabilities, travel costs, and hotel expenses cited as the primary financial pressures.

Those concerns prompted federations to lobby FIFA directly for a larger share of tournament revenues. At a recent FIFA Council meeting in Vancouver — where the World Cup trophy tour was also taking place — it was agreed to increase the prize and participation fund by 15%. The total pool now stands at $871 million (£645 million), with each of the 48 qualifying nations guaranteed a minimum payment of $12.5 million.

The United States co-hosts the 2026 tournament alongside Canada and Mexico. Both Canada and Mexico have already granted tax exemptions to national associations competing within their borders, leaving the US position as the outstanding concern for participating federations. FIFA itself has held tax-exempt status in the United States since the 1994 World Cup, but had until now been unable to extend equivalent protections to its member associations.

The 2026 FIFA World Cup will be the first edition to feature 48 teams, expanded from the 32-team format used since 1998. The enlarged field increases both the scale of the financial obligations involved and the number of federations affected by the tax question, making the Treasury agreement a particularly consequential development for the tournament’s overall organisation.

With the tournament scheduled to begin this summer, the timeline for national associations to submit their 501(c)(3) applications and receive formal confirmation of exempt status remains tight. FIFA has not confirmed when or how it will communicate procedural guidance to its members.