A significant bill, known as HR 9495, has recently passed in the US House of Representatives, allowing a treasury secretary appointed by the president to unilaterally revoke the tax-exempt status of nonprofits deemed as “terrorism-supporting” organizations. The bill was approved with a vote tally of 219 in favor and 184 against, primarily along partisan lines—support from Republicans and opposition from Democrats, with 15 Democrats crossing party lines to support the bill.
Formally titled the Stop Terror-Financing and Tax Penalties on American Hostages Act, the legislation has raised serious concerns across the nonprofit sector and civil society. Many organizations, including civil rights advocates and nonprofit media, have expressed alarm and mobilized against the measure, fearing it could be used for political retribution.
Initially introduced with some bipartisan backing amid protests related to the Gaza conflict, the bill’s implications have become more contentious following Donald Trump’s recent reelection. Critics fear that Trump may exploit the legislation to target nonprofit organizations that challenge his political views or agenda.
A coalition including the ACLU and over 150 organizations has voiced strong opposition, warning that the bill could grant excessive power to the executive branch to investigate and dismantle nonprofits based merely on accusations. Concerns have also been raised about the bill’s potential to sidestep due process, as it places the onus on nonprofits to prove their innocence within a limited timeframe of 90 days.
The bill had previous support but failed to gain the necessary two-thirds majority in an earlier House vote. However, it has now successfully passed with a simple majority. Democratic opponents on the House floor articulated fears that the bill could be weaponized against political opponents. For instance, Rep. Lloyd Doggett likened the legislation to “a death penalty for nonprofits,” arguing that it enables Trump to target those he views as adversaries.
The bill is now set to move to the Senate, where its future remains uncertain, especially given the slim Democratic majority. Advocates believe that should HR 9495 succeed, it could fundamentally undermine the safeguards protecting nonprofits in the U.S.
Despite the challenges, it’s essential to recognize the vibrant mobilization of civil society organizations speaking out against this bill. Their collective action could foster a greater awareness about the importance of protecting nonprofit freedoms. This discourse could ultimately lead to more robust safeguards for civil liberties, ensuring that diverse perspectives continue to thrive in the democratic process.
As it stands, the legislation’s journey does not conclude here; it may reappear in a future Republican-controlled Congress, emphasizing the need for ongoing vigilance in safeguarding the rights of nonprofits in a democratic society.