The U.S. House of Representatives has passed a contentious bill that grants the Treasury Department the authority to revoke the tax-exempt status of nonprofits deemed to support terrorism. This legislation, known as H.R. 9495, has raised significant concerns among civil liberties advocates about its potential misuse under a future Trump administration.
Key Takeaways
- The bill passed with a vote of 219 to 184, with 15 Democrats joining Republicans in support.
- Critics argue the bill undermines due process and could be used to target political opponents.
- The legislation is seen as a response to the recent surge in pro-Palestinian activism following the Israel-Hamas conflict.
Overview Of The Bill
H.R. 9495, dubbed the "Stop Terror-Financing and Tax Penalties on American Hostages Act," allows the Treasury Secretary to unilaterally designate any nonprofit as a "terrorist supporting organization." This designation can lead to the revocation of tax-exempt status without the need for substantial evidence or due process.
Supporters of the bill argue it is necessary to prevent U.S. resources from inadvertently supporting terrorism. However, opponents warn that it could be weaponized against dissenting voices, particularly those advocating for Palestinian rights.
Concerns Over Due Process
Critics, including civil rights organizations, have expressed alarm over the lack of due process embedded in the bill. Key concerns include:
- Unilateral Authority: The Treasury Secretary can label organizations without needing to provide evidence.
- Burden of Proof: Nonprofits designated as terrorist supporters must prove their innocence, reversing the traditional burden of proof.
- Chilling Effect: The mere designation could deter organizations from engaging in advocacy or dissenting activities.
Political Reactions
The passage of the bill has sparked a heated debate in Congress. Notable reactions include:
- Rep. Jamie Raskin (D-MD): Criticized the bill as unconstitutional, stating, "A sixth grader would know this is unconstitutional."
- Rep. Lloyd Doggett (D-TX): Warned that the bill represents a step toward authoritarianism, emphasizing that "authoritarianism is not born overnight."
- Rep. Pramila Jayapal (D-WA): Described the bill as an attempt to expand executive power to silence political dissent.
Implications For Nonprofits
If enacted, the bill could have far-reaching implications for various nonprofit organizations, including:
- Arts and Culture: Many arts nonprofits that engage in social justice issues could be at risk.
- Civil Society Groups: Organizations advocating for human rights may face increased scrutiny and potential designation as terrorist supporters.
- Political Advocacy: Groups opposing government policies could be targeted, stifling free speech and dissent.
Next Steps
The bill now moves to the Senate, where its fate remains uncertain. Advocates for civil liberties are mobilizing to challenge the legislation, emphasizing the need for checks and balances to prevent abuse of power.
As the political landscape evolves, the implications of H.R. 9495 will likely continue to be a focal point of debate, particularly in the context of rising activism and dissent in the United States.
Sources
- House Passes Chilling “Nonprofit Killer” Bill With 15 Democrats Voting “Yes” | Truthout, Truthout.
- GOP House Passes Bill to Let Trump Kill Enemy Nonprofits, The Intercept.
- House passes bill that would allow Treasury to target nonprofits it deems to support terrorism | AP News, AP News.
- Bill to Designate Nonprofits ‘Terrorist Organizations’ Passes House, ARTnews.com.
- US House passes bill to punish non-profits deemed to support ‘terrorism’ | Republicans | The Guardian, The Guardian.


