The U.S. House passed legislation on Thursday that would grant the Treasury Department the authority to revoke the tax-exempt status of nonprofits suspected of supporting terrorism. The bill, approved with a 219-184 vote, received majority support from Republicans who accused Democrats of changing their stance on the proposal after the recent presidential election.
According to the bill, organizations designated as 'terror-supporting' would have 90 days to appeal the decision. However, critics argue that the legislation lacks sufficient due process and could potentially be used to target a wide range of groups, including news outlets and civil society organizations.
The proposal has raised concerns among nonprofits, with some labeling it as an authoritarian move to expand executive powers and suppress political dissent. Critics also point out that supporting designated terrorist groups is already illegal under U.S. law, making the bill redundant.
If enacted, the bill would create a new category of 'terrorist supporting organizations,' allowing the Treasury Secretary to designate groups that have provided material support to terrorist organizations in the past three years. Nonprofit advocates worry that the bill could shift the burden of proof onto organizations, risking damage to their operations and reputation.
The fate of the bill now rests with the Democratic-controlled Senate, where its outcome remains uncertain. The legislation also includes provisions to extend tax filing deadlines for Americans held hostage or unlawfully detained abroad.
While the bill aims to combat terrorism financing, its broad scope and potential implications have sparked a heated debate among lawmakers and nonprofit organizations. The bill's supporters argue that it is a necessary measure to ensure that taxpayers do not inadvertently fund terrorist activities.
As the bill progresses through the legislative process, its impact on nonprofits and civil liberties will continue to be a subject of intense scrutiny and debate.
