House Passes Bill to Revoke Nonprofit Tax Exemption

The U.S. House passed HR 9495, granting the Treasury Department the authority to revoke the tax-exempt status of nonprofits deemed to support terrorism, with a 219-184 vote primarily along party lines. The bill, which has faced significant backlash, allows the Treasury Secretary to designate organizations as 'terror-supporting' without due process, prompting concerns from nearly 300 civil rights groups, including the ACLU, about potential abuse of power and targeting of pro-Palestinian organizations. Critics argue that the legislation is redundant, as support for terrorism is already illegal, and fear it could suppress political dissent. Support for the bill has waned among Democrats since its introduction, particularly following the recent presidential election, with many now worried about its implications under a potential Trump administration. The legislation includes provisions to extend tax filing deadlines for Americans held hostage abroad. The bill now moves to the Democratic-controlled Senate, where its future remains uncertain.