The US House of Representatives, controlled by Republicans, has passed a bill that grants the government broad authority to punish non-profit organizations it deems to be supporting “terrorism.” The legislation, known as the Stop Terror-Financing and Tax Penalties on American Hostages Act (HR 9495), was approved by a vote of 219-184, with 15 Democrats joining Republicans in support.
This bill empowers the Treasury Department to strip the tax-exempt status of organizations alleged to support terrorism, without the need to meet any specific evidentiary standard. Critics warn that simply being labeled as a supporter of terrorism could severely impact advocacy groups, stifling their work and intimidating civil society. While targeted organizations could appeal to the IRS or courts, the lack of a clear evidentiary requirement raises concerns about potential misuse.
Non-profits, particularly those advocating for Palestinian rights, have voiced strong opposition to the bill, citing fears that it could be used to silence political opponents, particularly if Donald Trump were to leverage the bill’s provisions. The bill merges the non-profit measure with a separate, uncontroversial one granting tax relief to Americans unjustly imprisoned abroad.
During debate, Democrat Jamie Raskin condemned the bill, calling it unconstitutional and an infringement on due process. He described it as a “sloppy” attempt to grant the president Orwellian powers, and warned it could lead to “Kafkaesque nightmares” for the non-profit sector.
Republican supporters of the bill, such as Pennsylvania congressman Lloyd Smucker, defended it as necessary to combat terrorism, pointing to financial support for Hamas. However, opponents, including Washington congresswoman Pramila Jayapal, expressed concerns that Trump could misuse the law to target dissenting voices, undermining democratic checks and balances.
The bill’s passage has heightened tensions, with critics accusing it of providing a “blank check” for presidential overreach. It now moves forward for further legislative review.