The House of Representatives is set to vote Thursday on the Stop Terror-Financing and Tax Penalties on American Hostages Act, a bill that would give the incoming Trump administration new power to muzzle, punish, and effectively shut down tax-exempt organizations without transparency or appropriate due process. This misguided piece of legislation would impact a wide range of tax-exempt organizations, including nonprofits, universities, and even news outlets.
Last week, Congress narrowly blocked the bill based on due process concerns and significant constituent opposition. In just a few days, over 100,000 people sent messages to their members asking them to oppose H.R. 9495. Last week’s vote was brought up under suspension, which requires a two-thirds majority to pass. Tomorrow’s vote will come under regular order and only requires a simple majority.
The American Civil Liberties Union led a coalition of over 180 non-profit organizations — including Planned Parenthood, AFL-CIO, United Auto Workers, and the NAACP — in a letter to Congress outlining why this bill is not only dangerous, but unnecessary. The letter also laid out how future administrations could abuse it to lock in power, silence dissent, and go after disfavored groups and vulnerable communities.
“Every time we give the president new powers and more authority to act alone, we create an open invitation for abuse by the executive branch,” said Kia Hamadanchy, senior federal policy counsel at ACLU. “While the ACLU would oppose this legislation no matter who the president is, and there is no question it could be weaponized against groups on both ends of the ideological spectrum, the rhetoric we saw on the campaign trail from the president-elect is even more reason for Congress to reject this bill.”
H.R. 9495 joins two unrelated measures together: one allowing the Treasury Department to withhold tax-exempt status from any nonprofit it accuses of being a “terrorist-supporting organization” — without being required to disclose the evidence against it — and another, non-controversial measure, which would offer tax relief to Americans imprisoned unjustly abroad. The latter provision already passed the Senate as a stand-alone bill, and as the coalition letter notes, none of the groups oppose these tax-relief provisions. In fact, not a single member of Congress has thus far raised any opposition to these provisions. The fastest way for it to become law is for the House to simply pass the Senate bill.
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