Representative Thomas Massie voted against giving President-elect Donald Trump's Treasury secretary more power over nonprofit organizations.
House Majority Leader Steve Scalise teed up another vote this week for the Stop Terror-Financing and Tax Penalties on American Hostages Act after the legislation failed to pass last week, even with bipartisan support. The bill passed with a majority vote on Thursday, with all but 16 Republicans voting in favor. Massie was the lone nay vote from the Republican Party and 15 Republicans did not vote.
The Republican-led bill, HR 4945, would give the United States Treasury secretaries the power to designate nonprofit organizations as "terrorist-supporting" and, thus, strip those groups of their tax-exempt status. Massie also voted against the bill last week, which failed after it didn't get enough votes to pass the two-thirds vote threshold.
The Republican defector joined 183 Democrats opposing the bill's passage. It now goes to the Senate.
The bill's passage would apply the amendments to taxable years after its enactment, including those of the incoming Trump administration. The current version of the legislation is paired with a provision that offers tax relief to Americans who are "unlawfully or wrongfully detained abroad, or held hostage abroad."
Once an organization is notified about its "terrorist supporting" designation, it would have 90 days to appeal before it is stripped of its 501(c)(3) status. Treasury officials would not be required to give reasoning for the decision, nor would the department need to provide evidence.
Opponents of the bill argue that the president-elect could use the new powers granted to the Treasury secretary under H.R. 9495 to stifle free speech or target political opponents.
The American Civil Liberties Union warned that the bill grants "the executive branch new powers to investigate and functionally shut down and silence its critics."
The National Organization for Women called the legislation "another piece of performance by the extremists in Congress" aimed at giving Trump "dictatorial power" to mobilize against groups like theirs.
Pro-Palestinian groups, advocates and politicians have also argued that the incoming Treasury secretary could use the power against nonprofits supporting their cause. Trump has not yet announced who he wants to lead the Treasury, although reports suggest it's likely to be investor Scott Bessent.
The Arab American Institute, which advocates in the interest of the 3.7 million Arab Americans in the U.S., warned in a Monday press release that "This vague and expansive legislation would disproportionately target groups working on these issues, especially in the context of the genocide in Gaza."
"Even the mere threat of investigation could chill donors, stifle advocacy, and financially devastate organizations before they have a chance to defend themselves. The bill's lack of due process further compounds these risks, making it nearly impossible for accused nonprofits to clear their names," the institute said.
"If passed, H.R. 9495 would chill not only advocacy for Palestinian human rights but the whole broader nonprofit ecosystem by weaponizing the U.S. government against us."
During last week's vote, 52 House Democrats voted in favor of the bill. On Thursday, only 15 voted in favor. The bill now goes to the Senate for a vote and if it passes, President Joe Biden will have to sign it into law.
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