Giving Compass' Take:
- Thalia Beaty and Farnoush Amiri discuss legislation targeting nonprofits that would give the the Treasury unilateral power to revoke nonprofit tax-exempt status for alleged terrorist ties.
- How could unchecked governmental authority over nonprofit tax-exempt status undermine trust and accountability in civil society?
- Learn more about key issues in health and how you can help.
- Search our Guide to Good for nonprofits focused on health in your area.
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The U.S. House passed legislation targeting nonprofits on 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 legislation targeting nonprofits 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 had Vice President Kamala Harris won the presidential election. “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.”
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.
Read the full article about the legislation targeting nonprofits by Thalia Beaty and Farnoush Amiri at The Associated Press.