On November 21, 2024, the U.S. House of Representatives passed the bill — H.R. 9495 — called the “Stop Terror-Financing and Tax Penalties on American Hostages Act.” The bill now advances to the U.S. Senate. H.R. 9495 sounds like a good thing, but in reality, the bill is a wolf in sheep’s clothing.
The bill would give unprecedented, expansive powers to the Treasury Secretary to revoke the tax-exempt status of nonprofit organizations — and nonprofits would have little power to fight back.
If this bill becomes law, the government will be able to unfairly target, harass, and intimidate nonprofit groups that it doesn’t agree with. Racial justice organizations, civil rights groups and protestors have long been targets of biased criminal investigations, and H.R. 9495 could be weaponized against them.
This is a well-worn playbook. For decades, people in power have intimidated, harassed, and investigated members of our community. Rev. Dr. Martin Luther King, Jr. had his wires tapped. The FBI compiled files on the Student Nonviolent Coordinating Committee and other civil rights organizations. Such targeting of civil rights organizations and activists continues to this day.
H.R. 9495 would give the federal government additional tools to target civil rights leaders, racial justice activists, and protestors — not because of legitimate national security or law enforcement interests but because the administration disagrees with their positions and goals. Even if the law is not used against them, H.R. 9495 will have a chilling effect on civil rights and racial justice organizations.
LDF sent a letter to lawmakers urging them to reject this harmful bill. Read our statement here and the full letter here.
Silencing opponents, stifling dissent, shutting down protestors — that is not what this country is about, but that’s exactly what H.R. 9495 aims to do. This bill would have a devastating impact on racial justice organizations and civil rights groups. And it must be stopped.
