WASHINGTON (AP) — The U.S. House passed legislation Thursday that would give the Treasury Department unilateral authority to strip the tax-exempt status of nonprofits it claims support terrorism, alarming civil liberties groups about how a second Trump presidency could invoke it to punish political opponents.
The bill passed 219-184, with the majority of the support coming from Republicans who accused Democrats of reversing course in their support for the “common sense” proposal only after Donald Trump was elected to a second term earlier this month.
Speaking on the House floor ahead of the vote, Rep. Jason Smith, GOP chair of the House Ways and Means Committee, said his colleagues across the aisle would still be supporting the bill if Vice President Kamala Harris won the presidential tUnited States. And we, as members of Congress, have the duty to make sure that taxpayers are not subsidizing terrorism,” the Missouri lawmaker said. “It’s very, very simple.”h
But the proposal has drawn concern from a range of nonprofits who say it could be used to target organizations, including news outlets, universities, and civil society groups, that a future presidential administration disagrees with. They say it does not offer groups enough due process.
“This bill is an authoritarian play by Republicans to expand the sweeping powers of the executive branch, to go after political enemies and stifle political dissent,” Rep. Pramila Jayapal, the chair of the Congressional Progressive Caucus, said on the House floor ahead of the vote.
Critics also see it as redundant as it is already against U.S. law to support designated terrorist groups. The proposal, which now goes to the Democratic-controlled Senate where its fate is uncertain, would also postpone tax filing deadlines for Americans held hostage or unlawfully detained abroad.
The bill would create a new category of “terrorist supporting organizations,” according to an analysis by the Congressional Research Service of a previous version of the legislation. This category is defined as any organization the Treasury Secretary designates as having provided material support to a terrorist organization in the past three years.
“We think this legislation is an overreach,” said Jenn Holcomb, vice president of government affairs at the Council on Foundations. “It would allow the Secretary of the Treasury to designate a 501c nonprofit as a terrorist organization at their discretion. And our concern is it doesn’t have enough in there to really ensure that a nonprofit understands the reasoning that a secretary designated as such.”