The U.S. House voted this morning to pass H.R. 9495, the “Stop Terror-Financing and Tax Penalties on American Hostages Act.” As we wrote yesterday, this bill will grant the Secretary of the Treasury the authority to revoke the tax-exempt nonprofit status of any organization deemed a supporter of terrorism with minimal due process and without disclosing evidence. The burden of proof would be on the nonprofit to disprove any allegations of terrorism. While it is unlikely the bill will be brought up to the Senate in its present form before the 118th Congress adjourns, it will likely be reintroduced in the 119th Congress and passed into law.
We know this is a time of great concern for a lot of the sector and the communities we serve. The bright spot is the vote that passed today had less Representatives voting yea (53 two days ago versus 15 today), so your calls do work. NAO will continue to advocate for the sector, and we promise to try to scan for and get information to you as soon as we can, along with actionable items and steps you can take. You can make a difference. NAO provides resources around what nonprofit organizations can do (and are unable to do) to influence legislation. You can explore more here and see all the advocacy resources NAO currently offers here.
NAO is here for you. Please reach out if you have questions or just want to connect.