The U.S. House of Representatives is preparing to reconsider H.R. 9495, legislation that would empower the U.S. Treasury Secretary to unilaterally deem nonprofits as terrorist-supporting organizations and revoke their tax exemptions with little due process. This bill failed to pass the House on November 12, but the House is planning to take it up again starting November 18.
H.R. 9495, the "Stop Terror-Financing and Tax Penalties on American Hostages Act," purports to stop bad actors from using nonprofit organizations to fund terrorism, as is already prohibited under current law. It also includes some laudable provisions to extend tax deadlines for those unlawfully or wrongfully detained or held hostage abroad.
But H.R. 9495 goes much, much farther, building on provisions in previous legislation, H.R. 6408, to empower the Secretary of Treasury to designate 501(c) organizations as “terrorist supporting organizations” and revoke their tax-exempt status with minimal due process. It would allow the Secretary to bring such accusations without disclosing the evidence behind them and would place the burden of proof on the organization to disprove the allegations. The potential for overreach, subjective application, and abuse of this authority is enormous, and the consequences for organizations and the people they serve cannot be overstated.
ACTION NEEDED:
Call your Congressional Representative TODAY and urge them to vote NO on H.R. 9495 when it comes up again for a vote.