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Trump Weighing Executive Order to Label Disliked Nonprofits as ‘Terrorist’ Groups: Report
According to the report, the administration is seeking to use a little-known provision in the federal tax code to strip nonprofits of their status without going through the normal Internal Revenue Service investigation and appeals process.
The law, signed in 2003 by then-President George W. Bush, allows the president to identify an organization in an executive order as supporting or engaging in terrorism. The law also prevents organizations from challenging designation or suspension in proceedings concerning federal tax liability.
It’s not clear yet which groups will be targeted, but the administration and its allies in Congress have already signaled their intent to go after left-leaning groups like George Soros’ Open Society Foundations, the Southern Poverty Law Center (SPLC), and the Council on American-Islamic Relations (CAIR).
The latter was forced to cease operations in Florida Thursday following a state-level "terrorism" designation by Republican Gov. Ron DeSantis.
In September 2025, weeks after the assassination of right-wing activist Charlie Kirk, Trump signed National Security Presidential Memorandum 7 (NSPM-7), which identified “anti-capitalism,” “anti-Christianity,” “extremism on migration, race, and gender,” and “hostility towards those who hold traditional American views on family, religion, and morality” as ideological characteristics associated with “domestic terrorism.”
The memo directed the IRS and other federal agencies to investigate nonprofits and their funders for alleged connections to political violence.
Shanna Singh Hughey, a policy strategist at the anti-authoritarian watchdog group Protect Democracy, said in September that the memo's vague and subjective language gave the administration expansive powers to target the nonprofits of its political foes.
“It goes way beyond that to the organizations that are connected to the folks who might be accused [of violence], including board members and staff, as long as that organization is accused of either funding or facilitating the violence done by the target," she told Inside Philanthropy.
“This is exactly what we expect to see when authoritarians attempt to consolidate and hold power,” she said. “There are entities that seek to hold the government accountable, and so the government uses the tools in its toolkit to try to silence them.”
Then-White House Deputy Chief of Staff and Homeland Security Advisor Stephen Miller speaks during an event with US President Donald Trump in the Oval Office of the White House on August 6, 2026, in Washington, DC. (Photo by Alex Wong/Getty Images)
Trump's reported plan to attack nonprofits comes on the same day that he named Stephen Miller, the chief architect of NSPM-7, as his new White House chief of staff.
Weeks before the memo was signed, Miller vowed to "dismantle and take on the radical left organizations in this country that are fomenting violence." He has said that descriptions of Trump and his immigration policies as "authoritarian" or "fascist" were examples of language that "incites" violence.
He has also referred to the Democratic Party itself as "not a political party," but "a domestic extremist organization."
During a State Department ministerial on terrorism in July, Miller said that under NSPM-7, the administration was empowered to “disrupt, identify, defund, debank, arrest, and prosecute” what it called terrorist organizations.
In the same speech, he claimed that left-wing extremists invoke "civil liberties" disingenuously to evade criminal punishment.
Describing leftists as the "enemies of civilization," he said, "It is essential that we are wise enough and strong enough to understand that these appeals must fall on deaf ears."
Ro Khanna Allies Push Him to Declare 2028 Bid, Emboldened by Progressive Midterm Surge
Following Election Day victories by Democrats like Abdul El-Sayed in Michigan, Troy Jackson in Maine, and other champions of left-wing populist economic policy across the country, they feel Khanna—a supporter of Medicare for All and leader of efforts to block President Donald Trump's wars—must strike while the iron is hot and set a progressive tone for 2028.
“By launching now, we are trying to ensure that the presidential primary debate is framed from a progressive populist perspective," Konst said.
Khanna has openly mulled a bid for the presidency for months. Although he is not involved with the "Run Ro" effort, he told MS NOW Thursday night he was "honored that people are encouraging me to run on a platform of Medicare for All, ending foreign wars and taxing the billionaires," and acknowledged that he was "thinking about it."
Rep. Ro Khanna (D-Calif.) speaks alongside Rep. Marjorie Taylor Greene (R-Ga.) and Rep. Thomas Massie (R-Ky.) during a news conference on the Epstein Files Transparency Act at the US Capitol in Washington, DC, on November 18, 2025. (Photo by Daniel Heuer/AFP via Getty Images)
Khanna has spent Trump's second term establishing himself as one of the most visible faces of resistance to the president, through frequent appearances on cable news and his actions on Capitol Hill.
With the libertarian Rep. Thomas Massie (R-Ky.) as an unlikely ally, he spearheaded a bipartisan push last year to force the US Department of Justice to release the files related to the late convicted sex offender Jeffrey Epstein, an effort that intensified scrutiny of Epstein's relationship with the president. Khanna also coined the term "Epstein class" to describe the wealthy and powerful people shielded from accountability.
He's also been at the forefront of a growing anti-interventionist movement in Congress, leading efforts to halt Trump's war in Iran and pushing to cut off military support to Israel amid the genocide in Gaza. Earlier this year, Khanna made international headlines when he was detained in the West Bank by armed Israeli settlers while visiting Palestinian communities affected by Israel's occupation and escalating settler terrorism.
"My view is that whoever runs needs to first have absolute clarity on not being a uni-party on war," Khanna told the Breaking Points podcast on Thursday.
Khanna was among the first to back some of the progressive candidates who took on establishment Democrats in the 2026 cycle—including El-Sayed, Sen.-elect Peggy Flanagan (D-Minn.), and Reps.-elect Chris Rabb (D-Pa.), Adam Hamawy (D-NJ), and Claire Valdez (D-NY). Over the course of the midterms, he endorsed over 70 candidates, campaigning in person with many of them.
"Ro Khanna has shown the work ethic, the humility, and the vision that we need in this moment," said Bowman, who was ousted from his seat in New York in 2024 after a multimillion-dollar push by the pro-Israel lobby. “Now is not the time to wait for progress. With the wind at our backs after the midterms, we need a leader who puts everything on the line to fight for a better vision of America. That’s Ro Khanna."
US Rep. Ro Khanna (D-Calif.) speaks as Writers Guild of America (WGA) and SAG-AFTRA members picket during strikes over contract negotiations at Netflix and Warner Bros. Discovery offices in New York on August 17, 2023. (Photo by Kena Betancur/VIEWpress via Getty Images)
If he chooses to run, Khanna would be stepping into an ideologically divided and potentially messy Democratic primary that could include other candidates from his progressive wing, such as Rep. Alexandria Ocasio-Cortez (D-NY), who has also publicly hinted at a run.
Khanna said earlier this week that he embraces the idea of the 2028 primary being an "open clash of ideas.” Beyond fights over single-payer health insurance and the country's relationship with Israel, Khanna's positions could put him at odds with many of his likely opponents.
He has clashed with California Gov. Gavin Newsom, who joined the state's billionaire-led effort to kill a 5% wealth tax that would have funded healthcare programs in the state. His call for a pause on artificial intelligence development, meanwhile, goes further than the more limited oversight proposed by those like Pennsylvania Gov. Josh Shapiro.
Khanna and Ocasio-Cortez share many of the same priorities—Medicare for All, a Green New Deal, and raising taxes on billionaires—but they are also not in lockstep on everything. While the Bronx congresswoman proudly identifies as a "democratic socialist," Khanna describes himself as a proponent of "progressive capitalism." He has also been critical of past positions she has embraced, like defunding police.
Konst has said it's critical for those seeking to take the progressive lane to begin making their case early and not give the establishment room to take control.
“The centrists organize and strategize early,” she said. “They have their donors, corporate consultants, and leaders lined up for years. Building off the lessons of past primaries, our goal is to channel the progressive energy into a vessel for organizing and spreading our winning message early, as we can’t wait for the politics to line up.”
Responding to a political climate of widespread anger at both parties, Khanna has emphasized that he wants to represent "a new politics in this country" and help turn Democrats into "a new party."
“We need America’s Next New Deal," he said on Thursday. "Whether I run or support someone else is something I will decide with my family after the holidays.”
As Trump Threatens to ‘Destroy the Rest of’ Iran, Top Democrat Vows Ending War Will Be One of ‘First Things We Do’
Smith said he expects Democrats will pursue a bill that forbids any further funding for the conflict, which the Pentagon says has cost over $47 billion, though independent estimates put the cost much higher.
A bill of this sort, Smith said, would almost certainly be vetoed by Trump, meaning Republicans in both chambers would need to provide enough votes to override his veto.
Overwhelming opposition to the Iran War, which has dragged on without an end in sight and caused inflation to surge, played a central role in the electoral beatdown Republicans suffered on Tuesday. Nationwide, 63% of voters said launching the war was the "wrong decision," according to an NBC News exit poll. Among those voters, 82% favored Democrats.
Nearly three-quarters of voters (74%) said that the war was a "crucial or major" factor in their vote, and 63% of them said they chose Democrats.
But even as members of his party, including Vice President JD Vance, state plainly that "the reason we lost is the war," Trump has continued to defend it and suggested he may pursue deeper intervention.
"I would rather not destroy the rest of the country if possible, but maybe I'll have to," he told reporters in the Oval Office. "You'll know soon enough."
Trump has made similar threats to "annihilate" Iran, "blow up" the country, and eradicate the "whole civilization" for months. But now that the midterms are over, there are fewer political pressures holding him back from following through on these threats.
The administration reportedly has plans drawn up for a renewed, large-scale bombing campaign that could target the country's energy infrastructure, military installations, and nuclear facilities, possibly with Israeli participation. Last month, it was reported that Trump was mulling dropping "the mother of all bombs," the largest nonnuclear bomb in the American arsenal, on Iran, which poses the risk of massive civilian casualties.
Sen. Chris Murphy (D-Conn.), who received a classified briefing about the plans days before the midterms, called them "insane" and said they involved deliberate attacks on civilians and civilian infrastructure in violation of international law.
Rep. Yassamin Ansari (D-Ariz.), the only Iranian American Democrat in the US Congress, said that Trump's renewed threats on Thursday only increase the urgency of ending the war.
"He’s once again threatening the annihilation of a country of 90 million people," Ansari wrote on social media. "A crime against humanity. Democrats must work urgently to end Trump’s reckless war of choice when we take back the House and the Senate. Enough is enough."
A "flurry of diplomatic activity" has followed the midterms, according to reporting by Axios' Barak Ravid. Iranian negotiators have spoken with regional mediators about a possible deal for the US to lift its naval blockade and release some of Iran’s frozen funds in exchange for nuclear talks and an end to Iran's travel restrictions through the Strait of Hormuz.
According to the same report, US Central Command was "finalizing preparations" to restart major combat operations in Iran, though there has not been an official directive from Washington.
"The American people delivered a clear mandate to end the illegal war on Iran," said the National Iranian American Council (NIAC) on Thursday. "Trump instead suggests he may escalate the war and commit war crimes to 'destroy the rest of' Iran. This is outrageous and unacceptable."
"Congress," it said, "must cut off funding for this war NOW."
US President Donald Trump shakes hands with Defense Secretary Pete Hegseth before speaking at Anduril Industries in Sparrows Point, Maryland, on October 6, 2026. (Photo by Jim Watson/AFP via Getty Images)
Democrats may have opportunities to push for the end of the war before January.
Rep. Thomas Massie (Ky.), the leading Republican critic of the war, whom Trump helped to defeat in his primary earlier this year, has said he plans to force a vote on impeaching Defense Secretary Pete Hegseth next week for violating the war powers resolution passed by Congress.
"By every estimation, it will pass and he will be impeached," Smith said. "And off that goes to the Senate. Then the Senate is legally required to spend all of their time dealing with that until it’s done with."
Still, it remains an open question whether the necessary two-thirds of senators would vote to remove Hegseth and whether the pressure could meaningfully affect the war.
Another chance to stop the war will come on December 11, when Congress will need to approve another spending measure to prevent a government shutdown.
According to Roll Call, the progressive advocacy group Indivisible sent a memo on Thursday pushing Democrats to block a National Defense Authorization Act and refuse to fund the Pentagon if “it doesn’t cut off money for the war.”
“Voters have granted Democrats majorities in the House and Senate with a clear mandate: End this war," said Jamal Abdi, the president of NIAC. "The first test of the Democrats’ commitment to that mandate will be when Congress takes up legislation to fund the government before funding runs out on December 11."
"After having won Congress thanks to a massively unpopular war," he said, "the best way to squander this momentum would be for Democrats to turn around and provide funding for the president to continue the conflict."
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