House Rejects Controversial Bill Targeting Nonprofit Tax Status

The bill, which failed to pass, would have allowed the Treasury to strip tax-exempt status from nonprofits deemed terrorist-supporting.

The 'Stop Terror-Financing and Tax Penalties on American Hostages Act' was defeated in the House of Representatives, falling short of the required two-thirds majority.
The bill faced significant opposition from progressive groups and civil liberties organizations, who argued it would threaten free speech and target dissenting nonprofits.
52 Democrats joined 204 Republicans in supporting the bill, sparking criticism from within their own party and from advocacy groups.
Opponents warned that the bill could be used to target pro-Palestinian organizations and other groups critical of government policies.
The bill could be reintroduced in the next Congress, where a simple majority might suffice to pass it under Republican control.