HR 9495: Bill Threatening Nonprofits Passes House
November 21, 2024
Source: Nonprofit Quarterly
dog97209 - US Department of Treasury Washington DC
A bill, HR 9495, which would allow a presidentially appointed treasury secretary to unilaterally strip a nonprofit of its status if deemed a “terrorism-supporting” organization, has passed in the US House of Representatives.
The bill passed 219-184, mostly along partisan lines, with Republicans in support and Democrats opposing; 15 Democrats broke with their caucus to vote in favor of the bill. NAME 'EM AND SHAME 'EM
The measure has raised alarm across the nonprofit sector and US civil society, and a multitude of organizations—from civil rights groups to nonprofit media to advocacy and direct service groups—have mobilized against the bill.
That measure was introduced with bipartisan support amid widespread campus protests over the war in Gaza, with at least the implication that some groups supporting or organizing those protests were also (or therefore) supporting “terrorism.”
That assumption alone would be enough to spark fears of political retribution by any president, via the secretary of the treasury, against disfavored nonprofit groups.
But the stakes of the bill were raised when Donald J. Trump won reelection this month.
Those mobilizing against the measure fear that Trump, who has publicly broadcast his interest and willingness to punish his perceived political opponents, will use the bill to target and silence any organization he disagrees with.
This September, the ACLU and some 150 organizations cosigned a letter opposing the legislation, expressing “deep concerns about the bill’s potential to grant the executive branch extraordinary power to investigate, harass, and effectively dismantle any nonprofit organization—including news outlets, universities, and civil liberties organizations like ours—by stripping them of their tax-exempt status based on a unilateral accusation of wrongdoing.”
Last week, the Council on Foundations, Independent Sector, National Council of Nonprofits, and United Philanthropy Forum penned another letter, stating:
This legislation would allow the Secretary of the Treasury to designate section 501(c) nonprofits as “terrorist supporting organizations” at the Secretary’s discretion, without requiring the Secretary to share their full evidence or reasoning with accused nonprofits. Furthermore, the legislation runs counter to constitutional due process protections by placing the burden of proof on the accused organization and providing only 90 days for organizations to demonstrate their innocence before revoking their tax-exempt status.
The bill failed an earlier House vote last week, when supporters failed to rally a 2/3 vote required for procedural reasons, with 52 Democrats breaking with their caucus to vote in favor. The House vote today, however, required only a simple majority to pass.
The bill now advances from the Republican-controlled House to the Senate, where its fate is uncertain—but where it very well may be defeated by Democratic senators, who still hold a slim majority.
Regardless, groups following the legislation warn that the bill is likely to return, at least in some form, in 2025—under a Republican-controlled Congress and President Donald Trump.
dog97209 - US Department of Treasury Washington DC
A bill, HR 9495, which would allow a presidentially appointed treasury secretary to unilaterally strip a nonprofit of its status if deemed a “terrorism-supporting” organization, has passed in the US House of Representatives.
The bill passed 219-184, mostly along partisan lines, with Republicans in support and Democrats opposing; 15 Democrats broke with their caucus to vote in favor of the bill. NAME 'EM AND SHAME 'EM
The measure has raised alarm across the nonprofit sector and US civil society, and a multitude of organizations—from civil rights groups to nonprofit media to advocacy and direct service groups—have mobilized against the bill.
That measure was introduced with bipartisan support amid widespread campus protests over the war in Gaza, with at least the implication that some groups supporting or organizing those protests were also (or therefore) supporting “terrorism.”
That assumption alone would be enough to spark fears of political retribution by any president, via the secretary of the treasury, against disfavored nonprofit groups.
But the stakes of the bill were raised when Donald J. Trump won reelection this month.
Those mobilizing against the measure fear that Trump, who has publicly broadcast his interest and willingness to punish his perceived political opponents, will use the bill to target and silence any organization he disagrees with.
This September, the ACLU and some 150 organizations cosigned a letter opposing the legislation, expressing “deep concerns about the bill’s potential to grant the executive branch extraordinary power to investigate, harass, and effectively dismantle any nonprofit organization—including news outlets, universities, and civil liberties organizations like ours—by stripping them of their tax-exempt status based on a unilateral accusation of wrongdoing.”
Last week, the Council on Foundations, Independent Sector, National Council of Nonprofits, and United Philanthropy Forum penned another letter, stating:
This legislation would allow the Secretary of the Treasury to designate section 501(c) nonprofits as “terrorist supporting organizations” at the Secretary’s discretion, without requiring the Secretary to share their full evidence or reasoning with accused nonprofits. Furthermore, the legislation runs counter to constitutional due process protections by placing the burden of proof on the accused organization and providing only 90 days for organizations to demonstrate their innocence before revoking their tax-exempt status.
The bill failed an earlier House vote last week, when supporters failed to rally a 2/3 vote required for procedural reasons, with 52 Democrats breaking with their caucus to vote in favor. The House vote today, however, required only a simple majority to pass.
The bill now advances from the Republican-controlled House to the Senate, where its fate is uncertain—but where it very well may be defeated by Democratic senators, who still hold a slim majority.
Regardless, groups following the legislation warn that the bill is likely to return, at least in some form, in 2025—under a Republican-controlled Congress and President Donald Trump.
Isaiah Thompson is the Leadership Editor at NPQ. Prior to coming to NPQ in 2023, he worked for various news organizations, including WGBH News, the New England Center for Investigative Reporting, the Bay State Banner, AxisPhilly, the Philadelphia City Paper, and the Miami New Times. His work has also appeared in ProPublica, This American Life, WNYC News, WHYY News, Al Jazeera America, Esquire, Salon, and other publications. He has been the recipient of various journalism awards for his work. Isaiah lives in Boston.
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