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Proposed legislation threatens to restrict the advocacy efforts of 501(c)(3) nonprofits, which play a vital role in promoting social justice, environmental protection, and public health. By broadening the definition of “political” activity, the H.R. 9495 - Stop Terror-Financing and Tax Penalties on American Hostages Act bill could limit nonprofits’ ability to address crucial policy issues, increase their financial and legal burdens, and stifle free speech, particularly impacting smaller, grassroots organizations. These changes risk silencing advocacy on pressing issues and diminishing democratic engagement, as nonprofits are essential for informing the public and holding powerful entities accountable. Protecting their freedom to advocate is necessary for an equitable and informed society.
"H.R. 9495 is a threat to free speech. It would grant the Trump administration, and any future administration, the ability to silence and censor its critics, curb free speech, target political opponents, and punish crucial organizations that speak truth to power and help people in the United States and around the world. This bill would increase the powers of the president at the expense of all of our freedoms and could impact not only organizations like Oxfam but other nonprofits, news outlets, or even universities who dare to dissent. It could put our ability to respond to some of the worst humanitarian crises at risk and prevent us from delivering lifesaving aid to some of the world's most marginalized people." - Abby Maxman (Oxfam America President and CEO)
"This legislation would allow the Secretary of the Treasury to designate section 501(c) nonprofits as “terrorist supporting organizations” at the Secretary’s discretion, without requiring the Secretary to share their full evidence or reasoning with accused nonprofits. Furthermore, the legislation runs counter to constitutional due process protections by placing the burden of proof on the accused organization and providing only 90 days for organizations to demonstrate their innocence before revoking their tax-exempt status." - Joint statement from Council on Foundations, Independent Sector, National Council of Nonprofits, and United Philanthropy Forum
H.R. 9495 - Stop Terror-Financing and Tax Penalties on American Hostages Act
US House Urged to Stop Bill Enabling Trump to Attack Nonprofits (Common Dreams, 11-11-24)
House set to vote on bill targeting nonprofits accused of supporting terrorism (Jewish Telegraphic Agency, 11-11-24)
H.R. 9495 “a threat to free speech” (Oxfam America, 11-15-24)
We Oppose H.R. 9495 (Independent Sector, 11-15-24)
On November 12, 2024, the U.S. House of Representatives held Roll Call Vote 458 on H.R. 9495, the "Stop Terror-Financing and Tax Penalties on American Hostages Act." A motion was made to suspend the rules and pass the bill, as amended, aiming to expedite the legislative process and avoid extensive debate and amendments. However, the motion failed despite these special rules designed to facilitate an early passage. The vote tally was 258 in favor and 160 against, with 14 members not voting, falling short of the required two-thirds majority needed to suspend the rules. This failure does not defeat the bill outright; instead, it remains eligible for future consideration under standard legislative procedures in 2025, where it may undergo additional debate and amendments to address concerns raised in this initial vote.
Final Vote Results for Roll Call 458 (Clerk.House.Gov, 11-12-24)
No Thanks to These 52 Dems, House Defeats Bill Enabling Trump Assault on Nonprofits (Common Dreams, 11-13-24)
House narrowly rejects bill to give U.S. new power to vet nonprofits (The Washington Post, 11-13-24)
After failing to pass in its initial form,
Lawmakers supporting the H.R. 9495 bill are deploying a two-pronged strategy
to push it through Congress. First, the bill has been attached to essential
budgetary or appropriations packages, creating pressure to pass it as part of
crucial government funding measures. Second, conservative lawmakers are
leveraging recent controversies surrounding nonprofits, such as allegations of
misuse of funds or political bias, to build public and political support.
This strategy reduces the likelihood of standalone
debates, minimizing public scrutiny and forcing lawmakers to make tough
trade-offs. Proponents are leveraging high-profile examples of alleged
nonprofit abuses to gain traction by framing the bill as a necessary
accountability measure. Critics argue these tactics are designed to sidestep
resistance and fast-track the bill's passage without thorough deliberation.
Opposition groups are warning that this approach
threatens nonprofit independence and sets a dangerous precedent for bypassing
democratic processes in advancing politically charged legislation.
House GOP Revives
Bill to Let Authoritarian Trump Crush Nonprofits (Common Dreams, 11-18-24)