A Threat to Free Speech and Civil Society

As the U.S. House of Representatives prepares to vote on H.R. 9495, the *Stop Terror-Financing and Tax Penalties on American Hostages Act*, nonprofits and advocacy groups are voicing serious concerns about the bill’s potential impact. While it includes tax relief provisions for Americans wrongfully detained or held hostage abroad, a controversial section could empower the government to terminate the tax-exempt status of organizations accused of supporting terrorism—with little to no accountability.

What’s at Stake?

Advocates argue the bill could serve as a tool for political suppression, enabling the government to stifle groups that challenge U.S. policies. Civil rights organizations like the ACLU and Bend the Arc: Jewish Action warn that, under this bill, the Treasury Department would have the power to strip tax-exempt status from nonprofits it deems “terrorist-supporting,” even if the evidence is minimal or nonexistent. Loss of tax-exempt status could mean financial ruin for organizations reliant on donations and tax-exempt status to function.

The ACLU highlighted how the government could abuse such powers: “This broad, vague bill is an open invitation for abuse. Tell your representatives to vote NO on H.R. 9495.” Critics suggest this would be an effective means of silencing organizations that challenge powerful political interests, particularly in matters of foreign policy, social justice, and environmental activism.

Silencing Criticism and Targeting Opponents

Some advocates see the bill as a targeted move against groups critical of U.S. support for Israel’s military actions in Gaza. However, they caution that the implications are far-reaching and could affect any organization that voices dissent. The legislation, they say, aligns with authoritarian tactics used to suppress free speech and peaceful protest.

“This bill should be a five-alarm fire for anyone who seeks to protect free speech, civil society, and democracy,” said Beth Miller of Jewish Voice for Peace Action. She described the bill as part of a broader strategy to criminalize advocacy, calling it a well-worn tactic to dismantle fundamental freedoms.

Who Else Could Be Affected?

H.R. 9495’s reach may extend beyond foreign policy or Palestinian solidarity groups. Environmental, pro-choice, and other progressive organizations might also fall within its scope. The bill’s vague criteria could provide an administration with a powerful weapon to target any politically unfavorable nonprofit, further polarizing the nonprofit sector.

Ryan Costello, policy director at the National Iranian American Council Action, warned that “the danger is much broader than just groups that work on foreign policy.” According to Costello, the bill would give an unprecedented level of discretionary power to the government with little recourse for those accused.

A Chilling Effect on Media and Civil Society

H.R. 9495’s passage could also hinder nonprofit news outlets and other organizations dedicated to public interest journalism. The concern is that nonprofits that champion causes the Trump administration disagrees with could be targeted using the sweeping powers in H.R. 9495.

What’s Next?

As this vote approaches, many civil rights advocates call on citizens to contact their representatives and urge a “No” vote on H.R. 9495. They argue that the bill poses a profound threat to democratic freedoms, potentially marking the beginning of a new era of political suppression.

H.R. 9495 is more than just a piece of legislation—it’s a potential turning point for the nonprofit sector and civil society. If passed, it could enable government control over dissent, jeopardizing the ability of organizations to advocate, organize, and operate freely. Nonprofits, activists, and citizens alike must be aware of the stakes and engage in the fight to protect the principles of free speech and democracy. 

Now is the time to act. If you value a robust and independent civil society, contact your representative and voice your opposition to H.R. 9495.

Sources

Ellis Carter is a nonprofit lawyer with Caritas Law Group, P.C. licensed to practice in Washington and Arizona. Ellis advises nonprofit and socially responsible businesses on federal tax and fundraising regulations nationwide. Ellis also advises donors concerning major gifts. To schedule a consultation with Ellis, call 602-456-0071 or email us through our contact form.