House Urged to Block Bill Allowing Trump to Target Nonprofits

The House of Representatives, currently under Republican control, is preparing for a vote on a bill that could significantly enhance the authority of newly re-elected President Donald Trump. Trump, who regained office last week amid claims of combating an “enemy from within” and promises to eliminate what he called “radical left thugs living like vermin in our nation,” could see an expansion in his powers.

Concerns are mounting among nonprofit organizations and human rights advocates regarding H.R. 9495, also known as the Stop Terror-Financing and Tax Penalties on American Hostages Act. While the bill aims to offer tax relief to Americans and their spouses who are unjustly detained or held hostage overseas, it also seeks to revoke the tax-exempt status of organizations deemed as supporting terrorism.

This specific provision, targeting groups accused of terrorism support, has previously passed the House but failed in the Senate, which was controlled by Democrats. Legal expert Maryam Jamshidi highlighted on social media that the provision is likely a strategic move to force the passage of the 501(c)(3) bill, as legislators would not want to appear against tax breaks for hostages.

The ACLU has been tracking this bill for some time and led a coalition last September to oppose it. With the recent election results, Trump’s campaign rhetoric, and the impending vote, there is renewed urgency to address potential threats posed by the bill.

The ACLU warned, “The House could vote as early as tomorrow on a bill that would provide the incoming Trump administration with yet another tool to suppress free speech, target political adversaries, and penalize dissenting organizations,” urging representatives to reject H.R. 9495 due to its broad and ambiguous nature that could lead to misuse.

An article by The Intercept shed light on how the proposed legislation would function:

The Treasury Secretary would send a preliminary notice to an organization about its potential designation as a “terrorist-supporting organization.” The organization would then have 90 days to appeal before losing its 501(c)(3) status, which provides tax exemptions to nonprofits. The bill does not require the disclosure of reasons or evidence for such designations.

“It essentially allows the Treasury Secretary to label any organization as supporting terrorism and disrupt their operations,” explained Ryan Costello, policy director at the National Iranian American Council Action. “This would debilitate a nonprofit’s ability to function as they would struggle with banking services and donations, creating a lasting stigma even if they eventually clear their name.”

The law is perceived as a tool to quiet strong criticism of U.S. support for controversial actions by Israel in Gaza, noted for leading to genocide charges against Israel at the International Court of Justice. However, Costello emphasized the broader risks, suggesting it could also affect pro-choice and environmental groups, depending on the administration’s targets.

Bend the Arc: Jewish Action expressed on social media, “This bill would give Donald Trump unchecked power to investigate and shut down nonprofits based on mere allegations of misconduct, with no need for justification,” urging a vote against H.R. 9495 to protect the ability to organize and maintain a representative nonprofit sector.

Beth Miller from Jewish Voice for Peace Action highlighted the dangers of the bill, calling it a “five-alarm fire for anyone committed to preserving free speech, civil society, and democracy.” She described the bill as part of a broader authoritarian strategy to suppress social justice movements and civil rights.

Ajam Media Collective’s editor, Alex Shams, described the bill as “terrifying,” warning that it could lead to widespread repression. Similarly, the Freedom of the Press Foundation voiced concerns about the threat to nonprofit news organizations, with advocacy director Seth Stern discussing the potential abuses of power by Trump in an The Intercept article.

“The threat has intensified following the election,” added the foundation. “We urge everyone to contact their representative and oppose H.R. 9495 immediately.”