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House Republicans Push to Revive Controversial Nonprofit Tax Provision

A revived clause in the GOP's reconciliation bill grants the Treasury broad powers to revoke tax-exempt status, raising alarms over free speech and due process.

FILE - The Capitol is seen in Washington, March 25, 2025. (AP Photo/J. Scott Applewhite, File)
Speaker of the House Mike Johnson, left, and House Majority Leader Steve Scalise arrive for the House Republicans' news conference following the House Republican Conference caucus meeting in the Capitol on May 6, 2025.
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Overview

  • House Republicans have reintroduced a provision allowing the Treasury Department to strip nonprofits of tax-exempt status by labeling them as 'terrorist supporting organizations.'
  • The language, first seen in last year’s H.R. 9495, is now embedded in the Ways and Means Committee’s draft reconciliation bill, bypassing traditional Senate hurdles.
  • Civil society groups, including Fight for the Future and CAIR, warn the measure could be used to target political opponents and chill dissenting speech.
  • Critics highlight the lack of clear criteria for determining 'terrorist support,' raising concerns over arbitrary enforcement and abuse of executive power.
  • The committee is set to mark up the bill, with Democrats facing pressure to oppose the provision and prevent its inclusion in the final package.