Today, the MAGA House of Representatives voted on H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act. This bill would give the incoming Trump administration new power to “shut down tax-exempt organizations without transparency or appropriate due process, impacting many tax-exempt organizations, including nonprofits, universities, and even news outlets” as part of the MAGA Project 2025 agenda. Once again, House Republicans are acting out the MAGA agenda, giving the president-elect broad new powers to go after his political opponents without any due process or oversight instead of addressing the top issues they campaigned on like inflation or border security.
MYTH #1: H.R. 9495 Is An Uncontroversial, Straightforward Anti-Terrorism Bill.
FACT: H.R. 9495 Is A “Gift For Trump” To Go After His Political Opponents. Described as a “gift for Trump” by reporters, H.R. 9495 would give the second Trump administration broad new powers to punish and shut down tax-exempt organizations – including universities, non-profits, and even news outlets. As MSNBC pointed out, “That’s a frightening prospect given Trump’s previous attempt to designate antifascist protesters as ‘terrorists,’ his classification of pro-Palestinian protesters as ‘pro-Hamas radicals,’ his open desire to quell dissent with violence, and his frequent classification of those who disagree with him as the ‘enemy from within.’ And frankly, considering Trump’s open fascination with illiberal leaders and their authoritarian style, it’s easy to imagine a Trump administration misusing this power.”
MYTH #2: H.R. 9495 Has Broad Support.
FACT: Hundreds of Civil & Human Rights Groups, Nonprofits, and Unions Are Opposing The Bill. A coalition of over 180 non-profit organizations, including top civil rights organizations, human rights groups, and unions like the NAACP, ACLU, AFL-CIO, and UAW, sent a letter to Congress outlining why the bill is a dangerous step to allow Trump to stifle dissent.
MYTH #3: H.R. 9495 Is An Important Step To Combat Terrorism.
FACT: It Is Already Illegal For Nonprofit Organizations to Support Terrorism – H.R. 9495 Revokes Due Process, Welcomes Abuse, and Removes Checks and Balances. It is already illegal for any organization to provide material support for terrorism. The MAGA bill will allow the Department of the Treasury to withhold tax-exempt status for any nonprofit organization it accuses of being a “terrorist-supporting organization” without being required to disclose evidence against it. As one Representative pointed out, the bill does not even require the administration to disclose the reasons for denying the targeted organization tax-exempt status. The new bill would remove constitutional checks and balances, revoke due process, and remove protections for the Trump administration’s targets. Under the bill, the Treasury Secretary – whom Trump has yet to nominate – would give the targeted organization just 90 days to appeal, placing the burden of proof on the organization, before it would be stripped of its 501(c)(3) status – all with no judicial or legislative review process in place. Without its tax-exemption status, the targeted organization could not get banks to service them or receive donations.