US bill with bipartisan support targets charities and pro-Palestine groups
The US House of Representatives on Tuesday is set to vote on a bill that would grant the treasury department the power to revoke the tax-exempt status of any non-profit it deems to be a "terrorist supporting organisation", which could put many pro-Palestinian groups critical of Israel's war on Gaza in danger.
The bipartisan Stop Terror-Financing and Tax Penalties on American Hostages Act will be voted on Tuesday evening local time under a House procedure that requires a two-thirds majority to pass. This is a sign that the bill could receive broad support across both political parties.
The legislation has two parts. The first would provide tax-exempt status and relief for American hostages being held abroad. The second part would give the US Treasury Secretary the authority to issue notices to organisations, with the intent being to label them "terrorist" supporting groups.
Any group that has received this notice could file an appeal. However, the law would not require the US Treasury Department to explain its reasons for the intent to designate it as a "terrorist supporting" group.
Civil liberties groups and rights organisations have opposed the bill, saying it could be used to go after pro-Palestinian groups in the US as well as any groups working to facilitate aid into Gaza, where Israeli forces have been overseeing a devastating war that has killed tens of thousands of Palestinians since October 2023.
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A coalition of more than 120 civil liberties groups signed a letter to House leadership urging lawmakers against passing the bill, which they say would "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".
"This bill dangerously weaponizes the Treasury against nonprofit organizations and houses of worship - Christian, Jewish, or Muslim - that dare to support Palestinian and Lebanese human rights or criticize Israel’s genocidal actions," Robert McCaw, government affairs director at the Council on American-Islamic Relations, said in a statement sent to lawmakers on Tuesday.
"Allowing such sweeping, unchecked power would set a chilling precedent, enabling the government to selectively target and suppress voices of dissent under the guise of national security. This isn’t just an attack on our communities; it’s a fundamental threat to free speech and democracy."
Republican Congressman David Kustoff, a co-sponsor of the bill, wrote the previous version of the legislation alongside Democrat Brad Schneider. Kustoff explicitly said the bill was aimed at "dismantling the financial networks of terrorist organizations, including Hamas".
In April, that version of the bill passed in the House with a vote of 382-11.
After the Hamas-led attacks on southern Israel on 7 October 2023 and Israel's response with a full-fledged war on Gaza that has killed more than 43,000 Palestinians, many US lawmakers have painted individuals and groups protesting against Israel's war as supporting Hamas, a US-designated terrorist group.
"Tax-exempt charities operating in the United States are providing support, encouragement, and potential financing to Hamas and Hamas-affiliated groups," Congressman Jason Smith said during a congressional hearing in November.
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