The U.S. House passed a bill, H.R. 9495, that would allow the treasury secretary to designate nonprofit organizations as supporters of terrorism and remove their tax-exempt status. The bill also includes provisions to postpone tax deadlines and reimburse late fees for Americans wrongfully detained abroad. Proponents argue the bill strengthens the government’s stance against terrorism, while opponents fear it could lead to abuse and discrimination.
Groups like the ACLU, NAACP, Greenpeace USA, and Planned Parenthood have expressed opposition to the bill, citing concerns about potential politicized enforcement and the negative impact on nonprofit organizations. The ACLU warns that the bill could have a devastating effect on humanitarian aid organizations, advocacy groups, news outlets, and universities due to the “stigma” associated with being labeled as supporting terrorism.
Currently, federal law prohibits providing material support to foreign terrorist organizations, and the IRS has a process in place to revoke tax-exempt status from organizations involved in terrorism. The bill, introduced by Rep. David Kustoff, aims to streamline this process, which he described as inadequate. However, with the bill losing Democratic support and facing potential opposition in the Senate, its passage into law is uncertain.
Nonprofits are concerned about the bill’s potential return in the future when Republicans may have control of Congress. Critics argue that laws addressing terrorism must be carefully crafted to avoid unintended consequences. The controversy surrounding H.R. 9495 highlights the ongoing debate between national security concerns and the protection of civil liberties and nonprofit organizations’ rights.
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