Free Speech

Tell Congress Not To Weaponize The Treasury Department Against Nonprofits

A dangerous bill that gives broad and easily abused new powers to the executive branch would allow the Secretary of Treasury to strip a U.S. nonprofit of its tax-exempt status. Nonprofits would not have a meaningful opportunity to defend themselves, and could be targeted without disclosing the reasons or evidence for the decision. Even if they are not targeted, the threat alone could chill the activities of some nonprofit organizations. Over 130 civil liberties, religious, reproductive health, immigrant rights, human rights, racial justice, LGBTQ+, environmental, and educational organizations signed a letter opposing the bill as written. Congress must not pass H.R. 9495, the so-called “Stop Terror-Financing and Tax Penalties on American Hostages Act.”

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The bill’s authors have combined this attack on nonprofits, originally written as H.R. 6408, with other legislation that would prevent the IRS from imposing fines and penalties on hostages while they are held abroad. These are separate matters. Congress should separate these two bills to allow a meaningful vote on this dangerous expansion of executive power. No administration should be given this much power to target nonprofits without due process.

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