US House Urged to Stop Bill Enabling Trump to Attack Nonprofits

The Republican-controlled U.S. House of Representatives is set to vote soon on legislation that would further empower President-elect Donald Trump, who won a new term last week after fear-mongering about the so-called "enemy from within" and vowing to "root out" people he described as "radical left thugs that live like vermin within the confines of our country."

Nonprofits and rights advocates are sounding the alarm about H.R. 9495, or the Stop Terror-Financing and Tax Penalties on American Hostages Act. The bill would provide tax relief for U.S. nationals and their spouses who are unlawfully or wrongfully detained or held hostage abroad but also includes legislation to terminate the tax-exempt status of "terrorist-supporting" groups.

A version of the section targeting groups accused of backing terrorism previously passed the House but stalled in the Democrat-held Senate. As legal scholar Maryam Jamshidi explained on social media Monday, "The cynical move is intended to coerce Congress to pass the 501(c)(3) bill because no one wants to be seen as opposing tax breaks for U.S. hostages/prisoners abroad."

While the bill has long been on the radar of organizations like the ACLU—which led a diverse coalition that spoke out against it in September—the recent election results, Trump's campaign promises, and the upcoming vote are sparking fresh concerns.

"As soon as tomorrow, the House will vote on a bill that would give the incoming Trump administration a new tool they could use to stifle free speech, target political opponents, and punish groups that disagree with them," the ACLU said on social media Monday. "This broad, vague bill is an open invitation for abuse. Tell your representatives to vote NO on H.R. 9495."

The ACLU highlighted reporting by The Intercept, which on Sunday detailed how the legislation would work:

Under the bill, the Treasury secretary would issue notice to a group of intent to designate it as a "terrorist-supporting organization." Once notified, an organization would have the right to appeal within 90 days, after which it would be stripped of its 501(c)(3) status, named for the statute that confers tax exemptions on recognized nonprofit groups.

The law would not require officials to explain the reason for designating a group, nor does it require the Treasury Department to provide evidence.

"It basically empowers the Treasury secretary to target any group it wants to call them a terror supporter and block their ability to be a nonprofit," said Ryan Costello, policy director at the National Iranian American Council Action, which opposes the law. "So that would essentially kill any nonprofit's ability to function. They couldn't get banks to service them, they won't be able to get donations, and there'd be a black mark on the organization, even if it cleared its name."

The bill is widely seen as an attempt to silence fierce critics of U.S. support for Israel's ongoing slaughter and starvation of Palestinians in the Gaza Strip, which has led to a genocide case against the Israeli government at the International Court of Justice. However, Costello warned that "the danger is much broader than just groups that work on foreign policy."

"It could target major liberal funders who support Palestinian solidarity and peace groups who engage in protest. But it could also theoretically be used to target pro-choice groups, and I could see it being used against environmental groups," he said. "It really would be at the discretion of the Trump administration as to who they target, with very little recourse for the targeted organization."

Bend the Arc: Jewish Action similarly stressed on social media Monday that "this bill would grant Donald Trump unilateral power to investigate and effectively shut down any tax-exempt organization based on a unilateral accusation of wrongdoing—without any explanation required."

"The House must vote no on H.R. 9495," Bend the Arc argued. "It is critical that we are able to organize and that we have a robust nonprofit sector that represents our needs and our interests to the government. This will be a necessary tool against the harms threatened by the second Trump presidency."

Beth Miller, political director of Jewish Voice for Peace Action, said in a statement that "this bill should be a five-alarm fire for anyone who seeks to protect free speech, civil society, and democracy. This bill is part of a broader MAGA assault on the right to protest that begins with attacks on Palestinian rights groups, and is aimed at outlawing the social justice movements that fight for progressive change. This is part of a well-worn authoritarian playbook to dismantle fundamental freedoms."

Describing the legislation as "terrifying," Ajam Media Collective editor Alex Shams said Monday that "the bill could usher in repression on a massive scale."

The threat extends to media organizations like Common Dreams. Freedom of the Press Foundation—whose director of advocacy, Seth Stern, wrote about the legislation for The Intercept in May—declared Monday that "this bill is a serious threat to nonprofit news outlets and Trump is sure to abuse these powers if given the chance."

"The threat is far more dire in light of the election," the foundation added. "Tell your representative to stop H.R. 9495 today."