UPDATE NOV 21, 2024: After a spirited debate this morning, the House passed H.R. 9495, the “Stop Terror-Financing and Tax Penalties on American Hostages Act.” The vote was 219 to 184 with 30 not voting. One Republican voted no and 15 Democrats voted yea.
Numerous Democratic Representatives switched their prior votes in favor of the bill in response to constituent pushback against the nearly unfettered authority Section 4 would give to the Treasury Secretary to revoke tax exempt organizations.
We don’t believe H.R. 9495 will be brought up in the Senate in its present form before the 118th Congress adjourns. We do throw out the possibility that the non-controversial provisions dealing with forgiving tax deadlines and penalties for hostages could make their way onto a separate bill that Congress could pass before adjourning sine die.
This week, the House is expected to once again consider the H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act (H.R. 9495), which targets relief for hostages of terrorism while strengthening tools to curb terrorism financing.
Four national organizations – the Council on Foundations, Independent Sector, National Council of Nonprofits, and United Philanthropy Forum – sent a letter to the House expressing opposition to the portion of the bill that would give the Treasury Secretary nearly unfettered power to revoke the tax-exempt status of charitable nonprofits that the Secretary alleges supports terrorist activities.
The letter expresses concern that the legislation would impose “redundancies and confusion while providing the executive branch with expansive new authority that could be abused.” The ACLU and many other organizations have lined up in strong opposition as well. A version of the bill passed earlier this year but failed on a procedural vote last week.
