House Republicans on Monday quietly revived a proposal that would grant the Trump administration broad authority to crush nonprofits it views as part of the political opposition, from environmental justice organizations to news outlets.
Fight for the Future and other advocacy groups called attention to the measure, which was buried in the final pages of the House Ways and Means Committee's draft reconciliation bill, starting on page 380.
A markup hearing for the legislation is scheduled to take place on Tuesday at 2:30 pm ET.
The proposal would empower the U.S. Treasury Department to revoke the tax-exempt status of nonprofits deemed material supporters of terrorism, with only a hollow simulacrum of due process for the accused organizations. It is already illegal for nonprofits to provide material support for terrorism.
"The House is about to hand the Trump administration the ability to strip nonprofits of their 501(c)3 status without any reason or recourse. This is a five-alarm fire for nonprofits nationwide," said Lia Holland, campaigns and communications director at Fight for the Future. "If the text of last autumn's H.R. 9495 is passed in the budget, any organization with goals that do not line up with MAGA can be destroyed with a wink from Trump to the Treasury."
The measure passed the Republican-controlled House late last year with the support of more than a dozen Democrats, but it never received a vote in the Senate.
"This terribly thought-out legislation means that under the current administration, every environmental, racial justice, LGBTQ+, gender justice, immigration justice, and—particularly—any anti-genocide organization throughout the country may be on the chopping block," said Holland. "If Democrats capitulate to the wanton destruction of crucial civil society institutions, they had better expect civil society to burn them to the ground for that betrayal."
The GOP's renewed push for what opponents have called the "nonprofit killer bill" comes as the Trump administration wages war on nonprofit organizations, threatening to strip them of their tax-exempt status as part of a sweeping attack on the president's political opponents.
"In the months since inauguration, Trump and his Cabinet have found other means of cracking down on political speech—particularly speech in favor of Palestinians—by deporting student activists and revoking hundreds of student visas. He has already threatened to attempt to revoke the tax-exempt status of Harvard University, part of his larger quest to discipline and punish colleges," journalist Noah Hurowitz wrote for The Intercept late Monday.
"But the nonprofit clause of the tax bill would give the president wider power to go after organizations that stand in his way," Hurowitz added.
Robert McCaw, government affairs director at the Council on American-Islamic Relations, said Monday that "this provision is the latest in a growing wave of legislative attacks on constitutional rights."
"CAIR is urging every member of the Ways and Means Committee to VOTE NO on the inclusion of this provision and to support an expected amendment to strike the language," the group said in a statement. "Three Democratic members of the committee—Reps. Brad Schneider (Ill.), Tom Suozzi (N.Y.), and Jimmy Panetta (Calif.)—previously voted in favor of the Nonprofit Killer Bill on the House floor last year. They must reverse course and vote to oppose it in committee."