Controversial «Nonprofit Killer» Bill Advances in U.S. House

The controversial Stop Terror-Financing and Tax Penalties on American Hostages Act, also known as H.R. 9495, is progressing through the U.S. House of Representatives after an initial block earlier this week by a coalition of Democrats and one Republican. The bill, which aims to empower the Secretary of the Treasury to designate nonprofits as «terrorist supporting organizations» and revoke their tax-exempt status, is set for a hearing before the Committee on Rules on Monday.

Earlier this week, 144 Democrats and one Republican voted against the bill, with Democrats fearing that the legislation could be leveraged by President-elect Donald Trump to target ideological adversaries. Despite this setback, Republicans, backed by pro-Israel groups, are pressing forward.

Critics of the bill argue that it could suppress free speech, particularly in support of Palestine. A coalition of Arab American and Muslim organizations, which includes the Council on American-Islamic Relations and American Muslims for Palestine, issued a statement opposing the bill, claiming that it seeks to criminalize opposition to U.S. policies in the Middle East.

Rep. Lloyd Doggett, D-Texas, has been a vocal opponent, leading efforts to block the legislation. «In this mislabeled bill, House Republicans are hiding behind hostages,» Doggett stated, expressing concerns about expanding presidential powers.

The bill’s supporters, including Rep. Jason Smith, R-Mo., argue it closes gaps in the tax code used by terrorist organizations and urge Democrats to reconsider their stance in favor of national security and taxpayer protection.

The upcoming Monday hearing will involve a markup session that could refine the bill’s provisions before it returns to the House floor. Given Republican control of the House and some Democratic support, the bill stands a significant chance of passage if put to a simple majority vote.

Meanwhile, civil liberties groups, such as those associated with the Council on Foundations and the National Council of Nonprofits, continue to voice opposition, raising concerns over due process and potential misuse of the new powers the legislation grants.

These groups emphasize the bill’s encroachment on constitutional rights and the potential harm to nonprofit organizations’ reputations and operations, as they could be unjustly accused of terrorism, affecting their financial and community standing.

With proceedings set to continue, the debate over H.R. 9495 reflects broader tensions within Congress over civil liberties and national security, especially under the incoming administration of President-elect Trump.