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"This measure would undoubtedly be weaponized by a White House with a track record of attacks against any speech that displeases our authoritarian president," warned one critic.
Free press, civil liberties, and community groups on Wednesday sounded the alarm after House Republicans added a provision in their budget reconciliation package that would empower U.S. President Donald Trump's administration to revoke the tax-exempt status of any nonprofit the executive branch deems supportive of a terrorist organization.
The House Ways and Means Committee voted along party lines to advance Republicans' reconciliation bill, which contains an amendment based on the language of the Stop Terror-Financing and Tax Penalties on American Hostages Act, or H.R. 9495.
The ACLU warned Tuesday that the provision—dubbed the "nonprofit killer" by critics—would grant the executive branch the power to "effectively shut down" entities including independent media like Common Dreams, universities, religious institutions, political organizations, advocacy groups, and charities under the guise of combating terrorism. The contentious language was buried on page 380 of the reconciliation bill prior to its markup.
"No president should have the right to destroy nonprofits for no reason."
More than 200 groups collectively condemned the proposal in a Wednesday statement, warning, "Charities that feed the hungry, churches and faith communities that comfort the grieving, veterans' groups that care for our heroes, and countless other service providing organizations are at risk today because of this legislation."
"Nonprofits are on the frontlines of meeting every community need," the coalition continued. "Whether it's an organization providing healthcare in a disaster, a small rural church, or a local food bank, no organization is safe if this becomes law."
H.R. 9495 was first introduced in the previous Congress but failed to receive a Senate vote before the legislative term expired last year. It allows the treasury secretary "to accuse any nonprofit of supporting terrorism—and to terminate its tax-exempt status without due process," the advocacy group Free Press Action explained in statement, warning the ostensibly anti-terror provision would be used to "crush dissent."
Civil liberties groups say its lack of clarity regarding the determination of whether or how a nonprofit supports terrorism would enable Trump to follow through on his threats to cancel the tax-exempt status for organizations he does not like.
"Today, the legislation formerly known as H.R. 9495 has returned to wreak havoc against dissenting voices across the country's nonprofit sector," Free Press Action advocacy director Jenna Ruddock said Wednesday.
"Like too many other overbroad and easily abused powers, this measure would undoubtedly be weaponized by a White House with a track record of attacks against any speech that displeases our authoritarian president," Ruddock continued.
"The bill would have a widespread chilling effect not only on nonprofit groups but on the millions of people across the United States who rely on these organizations to help them access crucial services and engage in the political process," she added.
"We've already seen the Trump administration falsely conflate students protesting in support of Palestinian rights with Hamas, deport immigrants to a [Salvadoran] prison without due process, and detain students thousands of miles away from their loved ones for criticizing U.S. foreign policy," ACLU senior policy counsel Kia Hamadanchy said Tuesday.
"It is not a stretch to imagine how this bill could be used to pressure universities to shut down student groups, scare human rights organizations away from working with vulnerable communities, and further stifle dissent in this country," Hamadanchy added.
Ruddock of Free Press Action said that "it's not hard to imagine how the Trump administration would use [the bill] to exact revenge on groups that have raised questions about or simply angered the president and other officials in his orbit."
Lia Holland, campaigns and communications director at the digital rights group Fight for the Future, called the proposal "a five-alarm fire for nonprofits nationwide."
"This is a First Amendment issue—no president should have the right to destroy nonprofits for no reason," Holland added.
While the provision's proponents argue it is necessary to crack down on nonprofits that raise money to fund terrorism, Holland said that is "a bald-faced lie, as there are already laws that prohibit and punish such activities without taking away our civil liberties."
Ruddock warned: "Chilling free speech doesn't keep Americans safe. Instead, it gives an authoritarian regime another tool to violate the rights that form the foundation of a healthy democracy."
"If Democrats capitulate to the wanton destruction of crucial civil society institutions, they had better expect civil society to burn them to the ground for that betrayal."
House Republicans on Monday quietly revived a proposal that would grant the Trump administration broad authority to crush nonprofits it views as part of the political opposition, from environmental justice organizations to news outlets.
Fight for the Future and other advocacy groups called attention to the measure, which was buried in the final pages of the House Ways and Means Committee's draft reconciliation bill, starting on page 380.
A markup hearing for the legislation is scheduled to take place on Tuesday at 2:30 pm ET.
The proposal would empower the U.S. Treasury Department to revoke the tax-exempt status of nonprofits deemed material supporters of terrorism, with only a hollow simulacrum of due process for the accused organizations. It is already illegal for nonprofits to provide material support for terrorism.
"The House is about to hand the Trump administration the ability to strip nonprofits of their 501(c)3 status without any reason or recourse. This is a five-alarm fire for nonprofits nationwide," said Lia Holland, campaigns and communications director at Fight for the Future. "If the text of last autumn's H.R. 9495 is passed in the budget, any organization with goals that do not line up with MAGA can be destroyed with a wink from Trump to the Treasury."
The measure passed the Republican-controlled House late last year with the support of more than a dozen Democrats, but it never received a vote in the Senate.
"This terribly thought-out legislation means that under the current administration, every environmental, racial justice, LGBTQ+, gender justice, immigration justice, and—particularly—any anti-genocide organization throughout the country may be on the chopping block," said Holland. "If Democrats capitulate to the wanton destruction of crucial civil society institutions, they had better expect civil society to burn them to the ground for that betrayal."
WE NEED CALLS NOW! HR 9495, now known as Section 112209, if passed, would give the Trump administration unprecedented power in suppressing nonprofits, by allowing the administration the power to strip organizations of their tax exempt status! Call 319-313-7674
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— Fight for the Future (@fightforthefuture.org) May 12, 2025 at 7:53 PM
The GOP's renewed push for what opponents have called the "nonprofit killer bill" comes as the Trump administration wages war on nonprofit organizations, threatening to strip them of their tax-exempt status as part of a sweeping attack on the president's political opponents.
"In the months since inauguration, Trump and his Cabinet have found other means of cracking down on political speech—particularly speech in favor of Palestinians—by deporting student activists and revoking hundreds of student visas. He has already threatened to attempt to revoke the tax-exempt status of Harvard University, part of his larger quest to discipline and punish colleges," journalist Noah Hurowitz wrote for The Intercept late Monday.
"But the nonprofit clause of the tax bill would give the president wider power to go after organizations that stand in his way," Hurowitz added.
Robert McCaw, government affairs director at the Council on American-Islamic Relations, said Monday that "this provision is the latest in a growing wave of legislative attacks on constitutional rights."
"CAIR is urging every member of the Ways and Means Committee to VOTE NO on the inclusion of this provision and to support an expected amendment to strike the language," the group said in a statement. "Three Democratic members of the committee—Reps. Brad Schneider (Ill.), Tom Suozzi (N.Y.), and Jimmy Panetta (Calif.)—previously voted in favor of the Nonprofit Killer Bill on the House floor last year. They must reverse course and vote to oppose it in committee."
"The arrest of climate activists against EACOP is a blatant move to silence crucial advocates for change," said Fridays for Future Uganda.
Police and soldiers from Uganda's U.S.-trained army cracked down on demonstrators at two Monday protests against the East African Crude Oil Pipeline, continuing the globally condemned oppression of EACOP opponents.
In the capital city of Kampala, where protesters tried to march on Parliament and the Chinese Embassy "there are 21 people arrested, they included 19 males and two females," defense attorney Samuel Wanda told Agence France-Presse. They were taken to the city's central police station and charging details were not yet available. Eight protesters would be directly impacted by the project.
As AFP noted, the China National Offshore Oil Corporation has an 8% stake in EACOP, which is set to carry crude nearly 900 miles from Uganda's Lake Albert oilfields to the port of Tanga in Tanzania. Ugandan and Tanzanian state-owned companies each have a 15% stake, and the remaining 62% is controlled by the France-based multinational TotalEnergies.
"The arrest of Stop EACOP activists in Kampala today is an attack on democracy and the right to protest," said climate campaigner and environmental consultant Ashley Kitisya on social media. "We condemn this crackdown and call for the immediate release of all detained activists. Peaceful voices demanding justice must not be silenced. #StopEACOP."
Fridays for Future Uganda declared that "the arrest of climate activists against EACOP is a blatant move to silence crucial advocates for change."
"Many affected are misled and unaware of the true risks," the youth-led group added. "We must oppose this injustice and demand EACOP’s immediate halt to protect people and the environment."
Hundreds of peaceful pipeline opponents—including breastfeeding mothers—also gathered in Hoima City, according to the Kampala-based Monitor. They were at a Kitara Secondary School (SS) and planned to demonstrate at regional EACOP offices but "were surrounded by heavily armed police" and Uganda Peoples' Defence Forces (UPDF) soldiers "who foiled the protest."
As the outlet noted last year, declassified U.S. State Department data shows that from 2019-21, Uganda received $8.5 million in military training assistance from the United States, and from 2012-16, the African country got grants for equipment worth $21.9 million .
On Monday, Christopher Opio told Hoima Resident City Commissioner Badru Mugabi that the project affected persons (PAPs) he represents had not received a government response to an April petition "so, we decided to say we can again put our concerns in writing. Today, we were taking our petition to the offices of EACOP, and Petroleum Authority of Uganda (PAU) peacefully."
As the Monitor detailed:
Mugabi responded saying: "If you have a court case and the court has not heard you, please come to our offices. We shall put these courts to order, or we shall appeal to their supervisors. But walking to these offices will not change the status quo legally."
Later, Mugabi selected a few PAPs' representatives and escorted them to deliver their petition to the offices of EACOP and PAU while the rest of the aggrieved locals were left at Kitara SS under tight security.
In a series of social media posts, the StopEACOP campaign called out law enforcement for blocking the peaceful protest in Hoima, highlighting the threats and intimidation faced by PAPs and local climate activists.
Despite the oppression in Uganda, protests are planned in Tanzania on Thursday, according to the global climate organization 350.org.
"The EACOP project threatens local communities, water resources, biodiversity, and efforts to curb climate change while providing little to benefit ordinary Ugandan and Tanzanian people," the group said Monday. "Already, tens of thousands of people along the pipeline's route and near its associated oil drilling sites have been forcibly displaced, losing their land, livelihoods, and traditional ways of life. Many have been relocated to inadequate homes on infertile land, making it impossible to grow crops or sustain their families. Others have received inadequate compensation or none at all, leaving them unable to rebuild their lives."
"Additionally, community members and activists face escalating threats, including violence, intimidation, arrests, harassment, and even abductions for resisting the project," 350 added. "Impacted communities and land, human rights, and environmental defenders in the project's host countries are taking to the streets to demand an end to EACOP and justice for the harm that has already been caused."