Common Dreams

05/19/2025

While welcoming the removal of legislation in House Republicans’ budget reconciliation package that would empower U.S. President Donald Trump’s administration to revoke the tax-exempt status of any nonprofit it deems supportive of a terrorist organization, rights groups on Monday urged vigilance, warning that GOP lawmakers could slip the contentious provision back into a future draft of the legislation.

In an unusual late Sunday night session, the House Budget Committee voted 17-16, with four Republicans voting “present,” to advance the One Big Beautiful Bill Act—named in an act of GOP fealty to Trump’s description of the proposal—which would extend the president’s 2017 tax cuts that have disproportionately benefited ultrawealthy households and corporations while slashing vital social programs upon which tens of millions of people rely.

The latest version of the proposal no longer contains an amendment based on the language of the Stop Terror-Financing and Tax Penalties on American Hostages Act, or H.R. 9495—which critics have dubbed the “nonprofit killer.”

“The removal of the nonprofit killer bill from the House Republicans’ advanced tax package is a promising sign, not a victory,” according to the advocacy group Free Press Action.  The bill allows the treasury secretary “to accuse any nonprofit of supporting terrorism—and to terminate its tax-exempt status without due process.”

Civil liberties defenders say the proposal’s lack of clarity regarding the determination of whether and how a nonprofit supports terrorism would enable Trump to follow through on his threats to cancel the tax-exempt status for organizations with which he disagrees, including universities, advocacy groups, media outlets, charities, religious institutions, and others.