The House of Representatives approved a bill on Thursday that grants the treasury secretary the authority to unilaterally revoke the tax-exempt status of any nonprofit organization they perceive as a “terrorist supporting group,” essentially dismantling the entity.
The Stop Terror-Financing and Tax Penalties on American Hostages Act, known as H.R. 9495, was approved by a vote of 219-184. Surprisingly, 15 Democrats joined the Republican majority in granting the incoming Donald Trump administration extensive authority to go after their political adversaries.
Last week, there was an unsuccessful attempt to expedite the bill with a two-thirds majority vote. However, 52 Democrats supported it, while 145 voted against it.
A few lawmakers and various civil rights groups, such as the American Civil Liberties Union and a coalition of 55 Jewish organizations, have stepped forward to oppose the legislation. They are concerned that Trump may misuse the powers granted by the legislation to target his critics.
The bill, introduced in November 2023, has undergone minimal changes since its inception. Initially, it garnered significant bipartisan support as it was proposed by Rep. Claudia Tenney, a staunch pro-Israel lawmaker. Its primary objective was to address the issue of pro-Palestine groups allegedly providing support to Hamas.
However, the election of Trump has led to a growing number of Democratic supporters hesitating on their stance. Rep. Alexandria Ocasio-Cortez, for instance, expressed that many of her colleagues were swayed to vote against the bill after receiving concerns from their constituents.
Critics argue that the bill passed on Thursday would grant the Treasury Department the authority to label a nonprofit as a “terrorist supporting group” without following standard evidentiary requirements, thereby bypassing due process.
While targeted organizations would have the opportunity to appeal to the IRS and courts, opponents caution that the associated legal expenses and damage to their reputation alone would stifle free speech. This would particularly impact groups advocating for Palestinian rights or any other political cause that is not favored by Trump.
It is important to note that providing material aid to terrorist groups is already illegal for nonprofits, and the federal government has the power to enforce the law through prosecution and sanctions.
During a speech on the House floor, Rep. Lloyd Doggett, a Democrat from Texas, issued a cautionary message, highlighting the potential dangers of a tyrant’s rise to power.
He emphasized that a tyrant doesn’t simply seize power, but also seeks to expand his authority by demanding new powers. Doggett further emphasized the importance of those who have the ability to stop such a tyrant, urging them not to willingly surrender or succumb to his demands.
According to Representative Jim McGovern, a Democrat from Massachusetts, if Donald Trump labels someone as a terrorist, they are automatically considered a terrorist. He further adds that even though many Republicans may privately disagree with this assertion, they are reluctant to openly admit it.