A bill that would give President-elect Donald Trump broad powers to target his political foes has passed a major hurdle toward becoming law.
The House of Representatives on Thursday passed the Stop Terror-Financing and Tax Penalties on American Hostages Act in a 219-184 vote largely along party lines, with 15 Democrats joining the Republican majority.
The bill, also known as H.R. 9495, would empower the Treasury secretary to unilaterally designate any nonprofit as a “terrorist supporting organization” and revoke its tax-exempt status, effectively killing the group. Critics say the proposal would give presidential administrations a tool to crack down on organizations for political ends.
“Authoritarianism is not born overnight — it creeps in.”
The provision previously enjoyed bipartisan backing but steadily lost Democratic support in the aftermath of Trump’s election earlier this month. On Thursday, a stream of Democrats stood up to argue against the bill in a heated debate with its Republican supporters.
“Authoritarianism is not born overnight — it creeps in,” Rep. Lloyd Doggett, D-Texas, said Thursday on the House floor. “A tyrant tightens his grip not just by seizing power, but when he demands new powers and when those who can stop him willingly cede and bend to his will.”
Republicans were quick to highlight what they described as flip-flopping by Democrats who previously supported the bill, chalking the change up to “Trump Derangement Syndrome.”
“The only thing that has changed for the majority of the people changing their votes over there is that Donald Trump will be president,” said Rep. Jason Smith, R-Mo. “That is very unfortunate.”
A previous bill with the provision was initially introduced in November 2023, in the early days of Israel’s U.S.-funded devastation of Gaza, with the ostensible goal of blocking U.S.-based nonprofits from supporting terrorist groups like Hamas. Rep. Claudia Tenney, R-N.Y., and other supporters of the bill touted it as a tool to crack down on pro-Palestine groups they claim exploit tax laws to bolster Hamas and fuel antisemitism.
“My bill is straightforward: Tax-exempt nonprofits should not fund terrorist groups,” Tenney, whose extreme pro-Israel views extend to denying the Israeli occupation of Palestinian territories, wrote in a tweet last week.
It is already illegal for nonprofits or anyone else in the U.S. to provide material support to terrorist groups, and the federal government has means to enforce it, including prosecution and sanctions. Tenney’s bill, however, would sidestep due process.
The bill includes some guardrails to ensure due process, but much of the language is vague on specifics, and critics fear that even if a group were to successfully appeal their designation, few nonprofit organizations would survive the legal costs and the black mark on their reputation.
Democratic Flips
While a previous version of the bill enjoyed broad bipartisan support and passed 382-11 in a House vote in April, many Democrats have withdrawn their support, citing a fear that the incoming Trump administration could weaponize the bill.
“The road to fascism is paved with a million little votes that slowly erode our democracy and make it easier to go after anyone who disagrees with the government,” said Rep. Jim McGovern, D-Mass., on the House floor Tuesday. “Donald Trump says you’re a terrorist, so you’re a terrorist. My friends on the other side of the aisle know it’s nuts, even if they don’t want to admit it.”
The GOP majority in the House made an initial attempt to pass the bill last week under a suspension of the rules, a parliamentary procedure that requires a two-thirds supermajority to pass. That effort foundered on November 12, when 144 Democrats and one Republican came out against the bill, just barely meeting the threshold to block it.
Among the Democrats voting against the bill last week was Rep. Dina Titus, D-Nev., a co-sponsor. In a statement to The Intercept, Titus said her support for the bill had been solely based on the hostage tax-relief provision and accused her GOP colleagues of adding the nonprofit provision that “could be abused by a future administration.”
“I’ve become increasingly concerned that H.R. 9495 would be used inappropriately by the incoming Administration.”
Despite a majority of Democrats coming out against it in last week’s vote, the bill still received the support of 52 Democrats on November 12. On Thursday, that number dwindled to 15, as Democrats flipped in opposition, including Reps. Angie Craig, D-Minn., and Gabe Vasquez, D-N.M., both of whom cited Trump’s increasingly unhinged cabinet selections in their statements prior to the vote.
“I strongly oppose any actions that support foreign terrorist organizations,” Craig said Wednesday on X. “However, over the past several days as the president-elect has rolled out his cabinet nominees, I’ve become increasingly concerned that H.R. 9495 would be used inappropriately by the incoming Administration.”
Lloyd Doggett, a Democrat from Texas, spoke with reporters after a House Democratic Caucus meeting in Washington on July 9, 2024. Photo credit: Tom Williams/CQ-Roll Call, Inc via Getty Images
The opposition to the bill has been led by civil society groups like the American Civil Liberties Union, with over 150 organizations signing petitions against it. A coalition of more than 55 Jewish organizations also released a letter opposing the legislation. Doggett emerged as a prominent voice against the bill in Congress, criticizing it as unnecessary and granting excessive power to a Trump appointee.
While Democratic supporters of the bill have largely remained silent, Doggett and a few other vocal opponents have spoken out. Democratic congressional leadership has not taken a clear stance on the bill, with House Minority Leader Hakeem Jeffries voting against it but not actively rallying opposition. In the Senate, Senator Chris Murphy has opposed the bill, while Majority Leader Chuck Schumer has not commented on the issue.
Critics have drawn comparisons between the bill and similar legislation in other countries like Israel, Hungary, and Russia, highlighting the potential impact on civil society and aid organizations. Oxfam America CEO Abby Maxman likened the bill to a law in Nicaragua that led to the shutdown of Oxfam’s operations in the country. Concerns have been raised that the bill could target aid organizations similarly, jeopardizing their ability to provide assistance to those in need.
Despite this, a single sentence or headline has the power to link our organization with words that may impact the level of support our backers provide.
Even those in favor of the bill recognize the potential dangers it presents to organizations like Oxfam. During the House Committee on Rules deliberations on H.R. 9495, Rep. Brad Schneider, D-Ill., proposed an amendment to enhance protections for such groups. (A spokesperson for Schneider declined to provide a comment.)
The bill advanced without any changes, and Schneider ultimately voted in favor of it without the proposed amendment. He once again supported the bill when it came before the full House on Thursday.
