The US House of Representatives is considering a bill that critics say would allow president-elect Donald Trump to go after his political enemies and tax-exempt organizations, including news outlets, universities and civil society groups.
If enacted, HR 9495 would give the incoming president and his secretary of the Treasury the ability to investigate tax-exempt organizations based on an accusation of wrongdoing. The bill was introduced in September by three Republican members and one Democrat.
The legislators allege a large portion of support for terrorist organizations in the wake of Hamas’s October 7 2023 attack on Israel has been funded by tax-exempt organizations, citing reports of material support going to designated terrorist groups.
Current law does not allow the Internal Revenue Service to suspend the tax-exempt status of organizations that have provided material support to such organizations, but it is a federal crime for non-profits to provide material support to terrorist organizations.
The American Civil Liberties Union (ACLU) and more than 100 other organizations are concerned the bill’s passage could create a law that is “politicized” and “discriminatory” in its enforcement. In an open letter to House Speaker Mike Johnson in September, the organizations warned that the law would authorize “broad and easily abused new powers for the executive branch.”
According to the bill text, the secretary of the Treasury could notify an organization of the department’s intention to classify it as a “terrorist-supporting organization” without reason. The non-profit would have 90 days to appeal the decision before its tax-exempt status is revoked.
Civil rights leaders fear that organizations that support Palestine, where more than 40,000 people have reportedly been killed by Israeli forces since October 7, could become targets.
The House could hold a vote on the legislation this week. The ACLU renewed its calls for politicians to oppose the legislation following Trump’s re-election.
“Passing this bill would hand the incoming Trump administration a dangerous new tool it could use to stifle free speech, target political opponents and punish disfavored groups,” Kia Hamadanchy, senior policy counsel at the ACLU wrote in a written statement on Tuesday.
“The freedom to dissent without fear of government retribution is a vital part of any well-functioning democracy.” The organization called the 90-day appeal timeline a “mere illusion of due process.” Because the government does not need to inform the organizations of the evidence against them, they could potentially not mount an adequate defense.
Some 130 groups – including Planned Parenthood, Greenpeace, Human Rights Watch, Women’s March and organizations advocating for Arab and immigrant Americans – warned congressional leaders in September about the bill’s sweeping implications.
In their letter to Johnson in September, the organizations wrote: “The potential for abuse under H.R. 6408 is immense as the executive branch would be handed a tool it could use to curb free speech, censor nonprofit media outlets, target political opponents,and punish disfavored groups across the political spectrum.”
On Tuesday Democratic congresswoman Rashida Tlaib tweeted: “No excuses. Every single one of my Democratic colleagues should be voting against this bill that gives Trump and his incoming administration dictatorial powers to target nonprofit organizations as political enemies without due process.”
Trump has repeatedly threatened to use the government to punish his political opponents.
The law would also provide relief to hostages held abroad who are subject to penalties for late tax payments that were due while they were held in captivity.
The ACLU is not advocating against that provision and claims a bill on that issue alone could wind up on President Joe Biden’s desk independently. It’s unclear if the bill would have enough support to pass through lawmakers.
