House Bill Grants Treasury Greater Power to Revoke Nonprofit Tax Status

The legislation combines tax relief for returned hostages with controversial measures allowing nonprofit groups to be labeled as terrorist supporters with limited recourse.

The U.S. House of Representatives passed H.R. 9495, a bill providing tax relief for Americans wrongfully detained abroad but also granting the Treasury Department authority to revoke nonprofit tax-exempt status for alleged ties to terrorism.
The bill allows the Treasury to designate nonprofits as 'terrorist supporting organizations' based on evidence of material support to designated foreign terrorist groups, with limited safeguards and a high burden of proof on the accused organizations.
Critics, including civil liberties groups and environmental organizations, warn the measure could be weaponized to target political opponents, chill dissent, and harm groups advocating for climate action, Palestinian solidarity, and other causes.
The legislation passed largely along party lines with most Republicans in favor and most Democrats opposed, a shift from earlier bipartisan support for similar measures before Donald Trump’s election as president.
Opponents argue that existing laws already criminalize providing material support to terrorist organizations and that the new provisions risk abuse by the executive branch to penalize disfavored groups.