The U.S. House of Representatives, in a controversial vote, passed legislation backed by Republicans that would authorize the Treasury Department to strip the tax-exempt status from nonprofits it determines are supporting terrorism. Voting 219-184 for the legislation, Democrats and many civil rights advocates took issue, pointing out possible misuse and lack of due process.
The bill would grant the Treasury Secretary the power to label organizations as “terrorist-supporting” if evidence exists that they provided material support to terrorist groups within the previous three years. Critics say the bill has vague language that could ensnare universities and schools, news publications, and community organizations in an unsubstantiated way, harming reputation beyond repair.
However, proponents of the law insist that the legislation bolsters national security by ensuring accountability among nonprofits. “Organizations with tax benefits must not use American generosity to fund acts of terror,” said one Republican lawmaker.
Democrats and nonprofit advocates have pushed back, concerned that the legislation could undermine the work of legitimate organizations and impinge on First Amendment free speech protections. They also faulted the bill for its failure to provide safeguards that would allow nonprofits to dispute Treasury Department decisions.
The measure now goes to the Senate-which is controlled by Democrats-where its prospects for passage are less than certain. Supporters argue that the legislation is crucial for national security, while critics counter that it’s a dangerous precedent.
The measure, if adopted, could change the operational landscape for nonprofits, many of which fear it would be abused under future administrations. Civil rights groups are already mobilizing in opposition to the bill, framing it as a risk to civil liberties and nonprofit independence.
