WASHINGTON (Diya TV) — The U.S. House of Representatives passed legislation Thursday that would give the Treasury Department sweeping authority to revoke the tax-exempt status of nonprofit organizations it determines have supported terrorism, prompting sharp warnings from civil liberties groups and nonprofit advocates.
The bill, which passed largely along party lines with a 219-184 vote, was championed by Republicans and now heads to the Democratic-controlled Senate, where its future remains uncertain.
Supporters argue the legislation is a necessary measure to ensure taxpayer dollars do not subsidize terrorism. “We, as members of Congress, must make sure that taxpayers are not subsidizing terrorism,” said Rep. Jason Smith (R-Mo.), chair of the House Ways and Means Committee, during floor debate. “It’s very, very simple.”
The legislation creates a new designation for what it calls “terrorist supporting organizations,” defined as any nonprofit that, in the Treasury Secretary’s judgment, has provided material support to a terrorist group within the past three years. Under the bill, the Treasury can unilaterally strip such nonprofits of their tax-exempt status. The bill was originally introduced after the October 7, 2023, Hamas attack on Israel.
But critics—including civil rights organizations and nonprofit associations—warn that the bill lacks critical safeguards and due process protections. “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,” said Rep. Pramila Jayapal (D-Wash.), chair of the Congressional Progressive Caucus.
Democratic opponents voiced concern that a future presidential administration could use the law to target nonprofits, such as civil society groups, universities, or even media outlets, with little transparency or accountability.
The Council on Foundations, the National Council of Nonprofits, Independent Sector, and United Philanthropy Forum issued a joint statement opposing the measure, warning it “would allow the Secretary of the Treasury to designate a 501(c) nonprofit as a terrorist organization at their discretion,” shifting the burden of proof to the nonprofit. “Even if an organization were eventually cleared,” they added, “the damage to their reputation and operations could be irreparable.”
Under the bill, nonprofits would have 90 days to appeal the designation, but legal experts point out that the Treasury is not required to fully disclose the evidence against them. The legislation only mandates a summary “to the extent consistent with national security and law enforcement interests,” raising alarms among groups like the American Civil Liberties Union.
Rep. Rashida Tlaib (D-Mich.), the only Palestinian-American member of Congress, voted against the bill for the third time. “I don’t care who the president of the United States is,” Tlaib said Thursday. “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.”
Supporters of the bill accuse Democrats of reversing course after former President Donald Trump secured a second term earlier this month. “Had Vice President Kamala Harris won the presidential election,” said Smith, “they would still be supporting this bill.”
The legislation also includes a provision to delay tax filing deadlines for Americans held hostage or unlawfully detained abroad, a move with broad bipartisan support.
A previous version of the bill passed in April, with some Democratic backing. However, it failed to pass last week under a two-thirds majority required under special House rules.
The bill’s advancement now places it in the hands of the Senate, where its prospects remain unclear. Until then, debate continues over the balance between national security and protecting civil liberties in the nonprofit sector.
