WASHINGTON — The U.S. Home handed laws Thursday that will give the Treasury Division unilateral authority to strip the tax-exempt standing of nonprofits it claims assist terrorism, alarming civil liberties teams about how a second Trump presidency might invoke it to punish political opponents.
The invoice handed 219-184, with nearly all of the assist coming from Republicans who accused Democrats of reversing course of their assist for the “common sense” proposal solely after Donald Trump was elected to a second time period earlier this month.
Talking on the Home flooring forward of the vote, Rep. Jason Smith, GOP chair of the Home Methods and Means Committee, stated his colleagues throughout the aisle would nonetheless be supporting the invoice had Vice President Kamala Harris received the presidential election. “And we, as members of Congress, have the duty to make sure that taxpayers are not subsidizing terrorism,” the Missouri lawmaker stated. “It’s very, very simple.”
“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, stated on the Home flooring forward of the vote.
Critics additionally see it as redundant as it’s already towards U.S. regulation to assist designated terrorist teams. The proposal, which now goes to the Democratic-controlled Senate the place its destiny is unsure, would additionally postpone tax submitting deadlines for People held hostage or unlawfully detained overseas.
The invoice would create a brand new class of “terrorist supporting organizations,” in line with an evaluation by the Congressional Analysis Service of a earlier model of the laws. This class is outlined as any group the Treasury Secretary designates as having supplied materials assist to a terrorist group up to now three years.
“We think this legislation is an overreach,” stated Jenn Holcomb, vice chairman of presidency affairs on the Council on Foundations. “It would allow the Secretary of the Treasury to designate a 501c nonprofit as a terrorist organization at their discretion. And our concern is it doesn’t have enough in there to really ensure that a nonprofit understands the reasoning that a secretary designated as such.”
The invoice would give a nonprofit designated as a “terror-supporting” 90 days to enchantment that designation. Nonprofits just like the American Civil Liberties Union have stated that the invoice doesn’t require that the Secretary of Treasury disclose all of the proof that was used to make the designation.
The invoice textual content outlines how the Treasury should ship “a description of such material support or resources to the extent consistent with national security and law enforcement interests.”
In a joint assertion with the Unbiased Sector, Nationwide Council of Nonprofits, and United Philanthropy Discussion board, the Council on Foundations additionally stated the invoice would shift the burden of proof to the nonprofit, and even when a company was finally cleared, the nonprofit would “risk irreparable damage to their operations and reputation.”
If it have been to turn out to be regulation, the invoice might apply to a variety of nonprofits, together with membership organizations, unions and personal foundations.
A model of the invoice was first launched after the Oct. 7, 2023 Hamas assault on Israel and the Home handed a earlier model of the invoice in April, together with with the assist of some Democrats.
The invoice was additionally introduced up for a vote final week however didn’t garner a two-thirds majority required underneath the suspension of the principles.
Democrat Rep. Rashida Tlaib, the one Palestinian-American consultant in Congress, stated Thursday earlier than the vote it will be her third time voting towards the invoice.
“I don’t care who the president of the United States is,” she stated. “This is a dangerous and unconstitutional bill that would allow unchecked power to target nonprofit organizations as political enemies and shut them down without due process.”