ACLU Urges House to Kill Bill that Could Give Trump Admin Power to Crush Dissent and Go After Political Enemies

WASHINGTON — The American Civil Liberties Union strongly urges the House of Representatives to vote NO on H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act, which would grant Donald Trump and his handpicked secretary of the Treasury power to investigate and effectively shut down any tax-exempt organization — including news outlets, universities, and civil society groups — by stripping them of tax-exempt status based on an unilateral accusation of wrongdoing.

“Passing this bill would hand the incoming Trump administration a dangerous new tool it could use to stifle free speech, target political opponents, and punish disfavored groups,” said Kia Hamadanchy, senior policy counsel at ACLU. “The freedom to dissent without fear of government retribution is a vital part of any well-functioning democracy, which is why Congress must block H.R. 9495 before it’s too late.”

While there is a 90-day “cure” period in which a designated nonprofit can mount a defense, it is a mere illusion of due process. The government may deny organizations its reasons and evidence against them, leaving the nonprofit unable to rebut allegations. This means that a nonprofit could be left entirely in the dark about what conduct the government believes qualifies as "support," making it virtually impossible to clear its name.

Last month, the ACLU and a diverse array of over 130 other tax-exempt organizations — including human rights, reproductive health, and immigrants’ rights groups — wrote to Congress urging them to vote no.

The letter also explains that the groups do not oppose the provisions in H.R. 9495 that relate to preventing the IRS from imposing fines and penalties on hostages while they are held abroad. Indeed, these provisions have already passed the Senate on their own, and if the House of Representatives were to pass a version of this bill that did not include the text of H.R. 6408, it could be sent immediately to President Biden for his signature.