Last week the House of Representatives passed a dangerous bill that would allow the Secretary of Treasury to strip a U.S. nonprofit of its tax-exempt status. If it passes the Senate and is signed into law, H.R. 9495 would give broad and easily abused new powers to the executive branch. Nonprofits would not have a meaningful opportunity to defend themselves, and could be targeted without disclosing the reasons or evidence for the decision.
This bill is an existential threat to nonprofits of all stripes. Future administrations could weaponize the powers in this bill to target nonprofits on either end of the political spectrum. Even if they are not targeted, the threat alone could chill the activities of some nonprofit organizations.
The bill’s authors have combined this attack on nonprofits, originally written as H.R. 6408, with other legislation that would prevent the IRS from imposing fines and penalties on hostages while they are held abroad. These are separate matters. Congress should separate these two bills to allow a meaningful vote on this dangerous expansion of executive power. No administration should be given this much power to target nonprofits without due process.
Protect nonprofits
Over 350 civil liberties, religious, reproductive health, immigrant rights, human rights, racial justice, LGBTQ+, environmental, and educational organizations signed a letter opposing the bill as written. Now, we need your help. Tell the Senate not to pass H.R. 9495, the so-called “Stop Terror-Financing and Tax Penalties on American Hostages Act.”
