Civil Society Letter to House Opposing H.R. 9495

WASHINGTON — The House of Representatives is set to vote Thursday on the Stop Terror-Financing and Tax Penalties on American Hostages Act, a bill that would give the incoming Trump administration new power to muzzle, punish, and effectively shut down tax-exempt organizations without transparency or appropriate due process. This misguided piece of legislation would impact a wide range of tax-exempt organizations, including nonprofits, universities, and even news outlets. Last week, Congress narrowly blocked the bill based on due process concerns and significant constituent opposition. In just a few days, over 100,000 people sent messages to their members asking them to oppose H.R. 9495. Last week’s vote was brought up under suspension, which requires a two-thirds majority to pass. Tomorrow’s vote will come under regular order and only requires a simple majority. The American Civil Liberties Union led a coalition of over 180 non-profit organizations — including Planned Parenthood, AFL-CIO, United Auto Workers, and the NAACP — in a letter to Congress outlining why this bill is not only dangerous, but unnecessary. The letter also laid out how future administrations could abuse it to lock in power, silence dissent, and go after disfavored groups and vulnerable communities. “Every time we give the president new powers and more authority to act alone, we create an open invitation for abuse by the executive branch,” said Kia Hamadanchy, senior federal policy counsel at ACLU. “While the ACLU would oppose this legislation no matter who the president is, and there is no question it could be weaponized against groups on both ends of the ideological spectrum, the rhetoric we saw on the campaign trail from the president-elect is even more reason for Congress to reject this bill.” H.R. 9495 joins two unrelated measures together: one allowing the Treasury Department to withhold tax-exempt status from any nonprofit it accuses of being a “terrorist-supporting organization” — without being required to disclose the evidence against it — and another, non-controversial measure, which would offer tax relief to Americans imprisoned unjustly abroad. The latter provision already passed the Senate as a stand-alone bill, and as the coalition letter notes, none of the groups oppose these tax-relief provisions. In fact, not a single member of Congress has thus far raised any opposition to these provisions. The fastest way for it to become law is for the House to simply pass the Senate bill.

WASHINGTON — The House of Representatives blocked H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act, 256-145. Because the House of Representatives was attempting to move the bill on suspension it required a two-thirds majority in order to pass. This legislation would have granted the Secretary of Treasury the unilateral power to investigate and effectively shut down any tax-exempt organization — including news outlets, universities, and civil society groups — by stripping them of their tax-exempt status based on an unilateral accusation of wrongdoing. Last month, the ACLU and a diverse array of over 130 other tax-exempt organizations — including human rights, reproductive health, and immigrants’ rights groups — wrote to Congress urging them to vote no. The following is a statement from Kia Hamadanchy, senior policy counsel at ACLU: “The freedom to dissent without fear of government retribution is a vital part of any well-functioning democracy, and now is not the time to grant the executive branch new powers to investigate and functionally shut down and silence its critics. Tonight enough members of the House voted to block giving the executive branch new broad and easily abused powers. This is only the first such battle we expect to see in the coming years, and we will continue to remain vigilant in working to ensure that the authority of the executive branch is appropriately limited.”