Vasquez withdraws support for bill targeting nonprofits

Justin Garcia Las Cruces Bulletin

Congressman Gabe Vasquez promised to vote against a controversial bill that would give the Trump administration power to deem some nonprofit organizations as supporting terrorists, withdrawing his previous support for the measure. 

First introduced in September, H.R. 9495, styled as the Stop Terror-Financing and Tax Penalties on American Hostages Act, came before the House of Representatives on Nov. 12. It failed, despite winning the support of Vasquez and 51 other Democrats, because a two-thirds majority was needed to clear a procedural hurdle.

Vasquez, who represents New Mexico’s southern congressional district, favored a previous version of the bill, which would also prevent the Internal Revenue Service from charging back taxes to overseas hostages. 

“The bill ensures that Americans detained or held hostage abroad do not come home to face a tax penalty or fine, potentially amounting to thousands of dollars, because they were unable to make tax payments during such hardship,” a spokesperson for Vasquez told the Las Cruces Bulletin, before the congressman switched his vote. 

The bill would postpone some tax filing deadlines for U.S. nationals and their spouses who are unlawfully or wrongfully detained or held hostage abroad, according to a summary of the bill.

The bill drew intense criticism, however, for a provision allowing the Treasury secretary to terminate the tax-exempt status of nonprofit groups if they believed the group was supporting terrorism.

The congressman, fresh from being re-elected in New Mexico’s 2nd Congressional district, indicated that popular criticism led him to change his mind.

“I have heard loud and clear from folks in my district and understood the concerns from my constituents, non-profit leaders, and their staff,” Vasquez wrote in a post on X, formerly Twitter. “The incoming administration’s cabinet nominations give me little faith that this tool would be used as intended.”

 In an open letter to Congress, the American Civil Liberties Union said the bill “creates a high risk of politicized and discriminatory enforcement,” and continued: “The executive branch already has extensive authority to prohibit transactions with individuals and entities it deems connected to terrorism, and non-profit organizations are already prohibited from providing material support to terrorist organizations. In fact, it would be a federal crime for them to do so.”

The Bill also drew criticism from local nonprofits. 

“Non-profits like NM CAFé are going to be on the front lines of protecting our communities against the worst impulses of the incoming administration. H.R. 9495 could allow the Treasury Secretary to target non-profits that dissent to actions like mass deportation and family separation,” a spokesperson for the community organizing organization told the Bulletin. “We don’t know what the future will hold, so we are asking Rep. Vasquez and our entire federal delegation to safeguard our right to dissent by voting no on this bill.”

In a statement to the Bulletin, Vasquez’s office said they felt the bill had adequate protections. Specifically, the bill would allow groups deemed terrorists to appeal the decision within 30 days of the designation. 

But now, if the bill reappears for a vote, it won’t have the support of Vasquez.