By Kristin Steele and Samantha Swaim
On November 21, 2024, the U.S. House of Representatives passed HR 9495, also known as the “Stop Terror-Financing and Tax Penalties on American Hostages Act,” with alarming consequences for nonprofit organizations advocating for civil rights, social justice, and the protection of marginalized communities. This legislation, which passed largely along partisan lines (219-184), would grant the U.S. Secretary of the Treasury unprecedented power to unilaterally revoke a nonprofit’s tax-exempt status if it is deemed to be a “terrorism-supporting” organization.
This bill has raised serious concerns within the nonprofit sector, and its potential impact on organizations dedicated to advocacy, education, and the protection of civil liberties cannot be overstated. In the wake of the recent presidential election, this bill becomes even more dangerous. It could provide future administrations—with a weapon to silence political opposition, particularly those nonprofits working on behalf of vulnerable and disenfranchised communities, including people of color, LGBTQ+ individuals, immigrants, and those fighting for racial justice.
Under HR 9495, the Treasury Secretary would have the authority to designate any 501(c)(3) nonprofit as a “terrorism-supporting” organization without providing full evidence or reasoning to the affected organization. This would allow the government to strip nonprofits of their tax-exempt status and threaten their financial survival based on a mere accusation—without the due process protections that are fundamental to our justice system.
Moreover, the bill places the burden of proof on the nonprofit, giving it just 90 days to prove its innocence, which is a chilling prospect for organizations that already face limited resources. As Isaiah Thompson writes in Nonprofit Quarterly, “The stakes of the bill were raised when Donald J. Trump won reelection… those mobilizing against the measure fear that Trump… will use the bill to target and silence any organization he disagrees with.”
At its core, this bill is an attack on freedom of speech and the ability of nonprofits to advocate for their communities. It would disproportionately impact groups engaged in advocacy for civil rights, environmental justice, labor rights, and the protection of LGBTQ+ individuals, immigrants, and people of color—precisely the types of organizations that often stand in opposition to authoritarian policies.
In practical terms, if HR 9495 becomes law, a nonprofit could be labeled as “terrorist-supporting” based on its political views or advocacy efforts. The vague and subjective language in the bill opens the door for any nonprofit to be targeted simply for taking a stand on controversial issues, like racial justice, LGBTQ+ rights, or climate change.
This is a critical moment for the nonprofit sector. As organizations that frequently help mobilize communities for social justice, we are acutely aware of the threats posed by any legislation that stifles free speech or targets marginalized groups. The potential for abuse under this bill is vast, particularly under an administration that has already shown a willingness to attack perceived political enemies.
The ACLU and over 150 other organizations have already raised alarms about this bill. Rep. Rashida Tlaib (D-MI) called it “a dangerous and unconstitutional bill” that would allow the government to target nonprofit organizations as “political enemies.” These concerns should resonate deeply with all of us who care about the future of nonprofit work and social justice in America.
While the bill has passed the House, it is now heading to the Senate, where its future remains uncertain. It is crucial that you act now to ensure this dangerous piece of legislation does not become law. Contact your Senators today and tell them to oppose HR 9495.
Click here to find your Senator’s contact information and make your voice heard.
We cannot afford to stay silent. Now is the time to take action, to protect our freedom, and to ensure that our work continues unhindered by political attacks. Call your Senators today and demand that they oppose HR 9495.
Together, we can protect the organizations that stand on the frontlines of justice, equality, and civil liberties. The time to act is now.
For further reading and updates on HR 9495, read this article by Isaiah Thompson at Nonprofit Quarterly here. Or this post by ACLU here.
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