Civil

Bill Sent To Congress Could Strip Non-profits’ Tax Status

A new bill passed in the House grants sweeping powers to the Treasury secretary, sparking fears of abuse, threats to nonprofits, and undermining democracy, with critics labeling it a “dictator’s dream.”

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By Stacy M. Brown
Senior National Correspondent
@StacyBrownMedia
NNPA Newswire

Donald Trump has openly declared he would rule as a dictator from his first day in office. Astonishingly, 15 House Democrats joined Republicans in passing a bill many say could empower Trump to do just that.

The Stop Terror-Financing and Tax Penalties on American Hostages Act (H.R. 9495) grants the Treasury secretary unilateral authority to label non-profits as “terrorist supporting organizations” and strip them of their tax-exempt status without due process. The measure passed the House on Thursday, Nov. 21, in a 219-184 vote.

Critics argue the legislation opens the door for abuse, with devastating consequences for free speech and democracy. Rep. Lloyd Doggett, D-Texas, called the bill a step toward authoritarianism. “A tyrant tightens his grip not just by seizing power but by demanding new powers.

And when those who can stop him willingly cede and bend to his will.”

The provision has been compared to laws used by authoritarian regimes in countries like Hungary and Nicaragua, where similar measures have silenced dissent and forced aid organizations to close. Critics say it would allow any president to target non-profits arbitrarily, bypassing judicial safeguards already in place.

The bill combines unrelated measures and includes tax-relief provisions for Americans held unjustly abroad. Opponents note that those provisions could easily be passed as standalone legislation without granting the Treasury Department new powers.

“This is not about fighting terrorism – it’s about handing Donald Trump the authority to decide who is a terrorist,” Doggett said. “Our democracy is under threat.”

Despite clear warnings, 15 Democrats supported the measure, joining Republicans to advance what civil rights advocates have described as a “dictator’s dream.” Reps. Henry Cuellar, D-Texas, and Jared Golden, D-Maine, are among those facing backlash for their votes. Critics have also called out House Minority Leader Hakeem Jeffries, D-N.Y., for failing to rally his caucus more forcefully against the bill, though he voted against it.

The American Civil Liberties Union (ACLU), along with over 180 organizations including Planned Parenthood and the NAACP, issued a scathing rebuke of the bill.