Organizations such as CAIR could have their non-profit tax status revoked if HR 9495 becomes law. Los Angeles, Oct. 5, 2024.
The House of Representatives passed House Resolution 9495, characterized as the “non-profit killer,” on Nov. 21. The vote was 219-184 with 30 representatives not voting. One Republican voted against the resolution, and 15 Democrats voted in favor.
There was mass opposition to the bill, which allows the U.S. Treasury Secretary to designate a group as a “terrorist supporting organization” and strip it of its tax-exempt status. This will create financial burdens for many activist groups.
After the first vote of 256-145, which was less than the two-thirds needed to move the bill along “expeditiously,” representatives were flooded with hundreds of thousands of calls, emails and letters urging them to vote against HR 9495. A coalition of 354 groups — representing immigrants, people of color, women, LGBTQIA2S+ people, people with disabilities, union workers, youth, environmentalists and more — sent a letter to Congress opposing the bill.
The American Civil Liberties Union, which was part of the coalition that sent the letter, explained: “The diverse group expressed deep concerns about the bill’s potential to grant the executive branch extraordinary power to investigate, harass and effectively dismantle any nonprofit organization — including news outlets, universities and civil liberties organizations like ours — by stripping them of their tax-exempt status based on a unilateral accusation of wrongdoing.” (aclu.org)
A few dozen representatives who voted for HR 9495 the first time flipped their vote under public pressure, but with the second vote only a simple majority was needed for it to pass. HR 9495 must still be approved by the Senate and signed by President Joe Biden before it becomes law.
Many groups have blasted the bill for how it will be used against the progressive movement. Specifically, the bill could be used against the movement in the U.S. in solidarity with Palestine. To cite the Council on American-Islamic Relations: “This bill was designed to silence and financially drain organizations that oppose Israel’s genocide of Palestinians, the slaughter of Lebanese and the broader erosion of human rights in the region. It is an attack on free speech and advocacy, but let us be clear: Advocates for justice will not be silenced.” (cair.com, Nov. 21)
A group does not have to be a 501(c)(3) non-profit agency to be targeted under this new law. It can affect any group with full or partial tax-exempt status.
This should concern unions with 501(c)(5) status, which means their income is tax-exempt, but donations cannot be claimed on a tax return as charitable contributions. Unions that have called for an arms embargo on Israel might, in the eyes of the Treasury Secretary, slanderously be deemed “terrorist supporting.” President-elect Donald Trump has nominated an arch conservative, Scott Bessent, for the position.
This bill is an attack on the whole working class. It does nothing but strengthen the repressive state apparatus.
We say it loudly: Kill this bill!
