House Bill could carry nationwide ramifications for nonprofits – The Sopris Sun
House of Representatives bill 9495, also known as the Stop Terror-Financing and Tax Penalties on American Hostages Act, has nonprofits bracing for a fallout. Introduced by Representatives Claudia Tenney (R-NY) and David Kustoff (R-TN), the bill is meant to prevent any funding going toward terrorist organizations and grant tax relief to Americans wrongfully detained abroad. But it has left people in the nonprofit sector with concerns.
The bill would give the Secretary of the Treasury authority to label nonprofits as “terrorist-
supporting organizations” and revoke their tax-exempt status. President-elect Donald Trump has selected investor Scott Bessent as Secretary of the Treasury.
If a 501(c)(3) organization is accused of supporting terrorism, domestic or abroad, they would only have 90 days to build a defense case. Civil rights groups, including the American Civil Liberties Union, have labeled this as a potential “death sentence” for organizations advocating for controversial causes.
The bill was drafted during the height of Gaza ceasefire protests. There is concern that, if passed, it could be used to disenfranchise nonprofits with even a thread of support for Palestine.
So various nonprofits fear they could be on the chopping block. The bill’s broad language leaves little reassurance that it couldn’t easily be politically weaponized.
“The communities that we’re invested in and plugged into are no strangers to being called terrorists,” said Dov Korff-Korn, managing attorney for the Sacred Defense Fund, an Indigenous advocacy nonprofit based in New Mexico. “There are Native people who are political prisoners right now for just trying to defend water from being polluted by mines.”
While many domestic non-
profits don’t have anything to do with the Middle East, the sociopolitical pressure left in the wake of the Oct. 11 attack on Israel and its response prompted many community leaders to take a stand on the issue.
“Most of our work has nothing to do with Palestine,” Korff-Korn said. “But because we’re trying to fight on behalf of Indigenous sovereignty and justice, we are allied with our relatives in Gaza. We’ve seen how criticism of Israel, even explicitly opposing Hamas, can still be met with accusations of terrorism support.”
H.R. 9495 also introduces tax relief for Americans wrongfully detained or held hostage abroad. If passed, it would postpone filing deadlines and waive penalties received during detention. The bill had bipartisan support, with 15 Democrats brought on board as co-sponsors.
“This is trading very dangerous precedent for a country that prides itself on a free and fair civil society,” Korff-Korn said. “If Democrats care so much about reproductive rights or environmental justice, can’t they see this law expanding to target those causes next? It’s not a slippery slope; it’s the blueprint.”
Historically, organizations have faced accusations of terrorist support for opposing federal policies, such as the Dakota Access Pipeline protests, when activists like Chase Iron Eyes with the Sacred Defense Fund were labeled domestic terrorists.
“We’re trying to shift some of our energy towards programs that don’t require government intervention,” Korff-Korn continued. These could include language preservation and food access programs. “It’s about staying true to our mission while insulating ourselves from potential legislative backlash.”
As the bill moves to the Senate, its fate remains to be seen. A Senate vote is expected in the coming weeks, and the outcome could reshape the nonprofit landscape.
View the bill and its progression at www.congress.gov/bill/118th-congress/house-bill/9495
