After widespread condemnation of 52 U.S. House Democrats who joined the GOP last week in backing a bill that would threaten nonprofit groups, there was significantly less support among Democratic members for the legislation on Thursday—but civil society groups denounced those who persisted in supporting what one critic called a “MAGA assault” on fundamental rights.
The so-called “Terror-Financing and Tax Penalties on American Hostages Act” (H.R. 9495) passed in the House by a vote of 219-184, with 15 Democrats joining all but one Republican in supporting the bill.
The 15 Democrats who supported the legislation in Thursday’s vote include Reps. Jared Golden (Maine), Colin Allred (Texas), Marie Gluesenkamp Perez (Wash.), and Henry Cuellar (Texas).
If ultimately signed into law, the bill would allow the U.S. Treasury Department to revoke tax-exempt status from nonprofits that it deems “terrorist supporting organizations.”
Former Labor Secretary Robert Reich urged the Senate, which is led by the Democrats until January, not to allow the “attack on free speech [to] come up for a vote during the lame-duck.”
“If it does, they must vote NO,” he said.
But with Republicans set to take control of both chambers of Congress as well as the White House after the New Year, advocates are warning that it will ultimately give the Trump administration “unprecedented and unchecked power” to take action against groups whose mission and work President-elect Donald Trump opposes, particularly those fighting for Palestinian rights.
“This bill is a five-alarm fire for anyone who seeks to protect free speech, civil society, and democracy. This bill is part of a broader MAGA assault on the fundamental right to public protest that begins with attacks on Palestinian rights groups and is aimed at outlawing all social justice movements fighting for progressive change,” said Beth Miller, political director for Jewish Voice for Peace.
It is shameful that the House of Representatives passed a bill that is straight out of the well-worn authoritarian playbook. The Senate must ensure that this bill to dismantle fundamental freedoms does not move forward or become law.
JVP noted that H.R. 9495 has its roots in the right-wing policy agenda Project 2025 and the Heritage Foundation’s Christian nationalist initiative Project Esther, which claims to combat antisemitism but is aimed at denying resources to groups that support the human rights of Palestinian people.
Advocacy groups including JVP credited civil society groups that mobilized in recent days to demand that Democrats oppose H.R. 9495, as Republicans prepared to bring the bill up again for a simple-majority floor vote. The legislation was blocked in the previous vote, despite the support of 52 Democrats, because it required a two-thirds majority to pass under a procedural rule.
JVP Action said it “drove over 35,000 letters to Congressional offices in one week opposing this legislation,” while groups including Fight for the Future, Muslims for Progressive Values, and the Council on American-Islamic Relations also joined the effort.
Chip Gibbons, policy director for Defending Rights & Dissent, a group dedicated to protecting the freedoms enshrined in the Bill of Rights, condemned the lawmakers who were unmoved by “overwhelming civil society opposition.”
“Two hundred and four Republicans and 15 Democrats in the House voted in favor of a bill that will be used to strip organizations of their nonprofit status in a politically motivated fashion and without proper due process,” said Gibbons.
The bill is driven by the current McCarthyite attacks on Palestine solidarity activism, but it empowers the executive branch to crackdown on charities broadly. It is intolerable for any administration to have these powers, but it is reckless for anyone who claims Trump poses a threat to democracy to hand his administration yet another weapon to use against their opponents.
Under the legislation, the federal government would not be required to disclose evidence of its allegations that nonprofits are “terrorist supporting organizations.”
“In the absence of meaningful due process, any nonprofit—from humanitarian organizations to independent newsrooms—could risk losing tax-exempt status,” said Defending Rights & Dissent.
The bill has further implications for civil society. The mere threat of being tied up in litigation, facing the reputational harm that such a designation would bring, and loss of donors, would chill speech and stifle dissent.
Online news outlet Mondoweiss said that if signed by Trump after he takes office, the measure “could become a powerful tool to crack down on groups that advocate for justice in Palestine.”
5/ The impact extends beyond just financial losses. Being labeled as a “terror-supporting” organization carries a heavy stigma, deterring donors and allies. The law essentially weaponizes fear to silence voices that challenge U.S. policies in the Middle East.
— Mondoweiss (@Mondoweiss) November 21, 2024
“If H.R. 9495 becomes law, we’ll be entering a dangerous era where nonprofits can be shut down with little evidence and no accountability,” said Mondoweiss.
Today it’s pro-Palestinian groups—tomorrow it could be any organization critical of government policy.