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house budget committee
'Nonprofit Killer' Pulled From GOP Tax Bill—For Now
"Because authoritarians love using censorship to silence opposition, it's likely gonna keep rearing its head," warned one rights group.
May 19, 2025
While welcoming the removal of legislation in House Republicans' budget reconciliation package that would empower U.S. President Donald Trump's administration to revoke the tax-exempt status of any nonprofit it deems supportive of a terrorist organization, rights groups on Monday urged vigilance, warning that GOP lawmakers could slip the contentious provision back into a future draft of the legislation.
In an unusual late Sunday night session, the House Budget Committee voted 17-16, with four Republicans voting "present," to advance the One Big Beautiful Bill Act—named in an act of GOP fealty to Trump's description of the proposal—which would extend the president's 2017 tax cuts that have disproportionately benefited ultrawealthy households and corporations while slashing vital social programs upon which tens of millions of people rely.
The latest version of the proposal no longer contains an amendment based on the language of the Stop Terror-Financing and Tax Penalties on American Hostages Act, or H.R. 9495—which critics have dubbed the "nonprofit killer."
"The removal of the nonprofit killer bill from the House Republicans' advanced tax package is a promising sign, not a victory."
According to the advocacy group Free Press Action, the bill allows the treasury secretary "to accuse any nonprofit of supporting terrorism—and to terminate its tax-exempt status without due process."
Civil liberties defenders say the proposal's lack of clarity regarding the determination of whether and how a nonprofit supports terrorism would enable Trump to follow through on his threats to cancel the tax-exempt status for organizations with which he disagrees, including universities, advocacy groups, media outlets, charities, religious institutions, and others.
Organizations that support Palestinian rights or oppose Israel's annihilation of Gaza—which is the subject of an International Court of Justice genocide case—have been particularly concerned about the bill, citing the Trump administration's moves to defund universities and other institution that oppose crackdowns on Gaza protests and the arrest and detention of foreign nationals, including green-card holders, for constitutionally protected protests.
The Nonprofit Killer Bill was pulled from the GOP tax package, but this is no victory. It could return at any moment. If we want to protect the right of nonprofits to speak truth to power, we must act now. 🛑 Tell Congress: Keep the Nonprofit Killer Bill OUT 👉 action.cair.com/a/nonprofit-killer-bill
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— CAIR (The Council on American-Islamic Relations) (@cairnational.bsky.social) May 19, 2025 at 12:58 PM
While welcoming the removal of the measure from the reconciliation package, groups including the Council on American-Islamic Relations (CAIR) warned of the possibility that Republican lawmakers could re-insert the provision in the reconciliation package, which is scheduled for consideration by the House Rules Committee later this week.
"The removal of the nonprofit killer bill from the House Republicans' advanced tax package is a promising sign, not a victory," CAIR government affairs director Robert S. McCaw said Monday. "This provision could come back at any time, and if Americans want to preserve the right of nonprofits to speak truth to power, now is the time to flood Congress with messages demanding they keep this language out of the bill."
"We are defending nothing less than the future of nonprofit advocacy and our core constitutional freedoms," McCaw added.
While it is uncertain why the proposal was removed from the reconciliation bill, ACLU senior policy counsel Kia Hamadanchy told The Intercept that "it's possible they took it out to rewrite it in some way, because we know that this package is going to be amended."
"But for now, it's not in the text of the bill, and that's an improvement from where we were at last week," Hamadanchy added.
Addressing everyone who contacted their federal lawmakers or took other action in opposition to the bill, the digital rights group Fight for the Future said on the social media site Bluesky that "pressure from YOU is making a difference."
"We killed this bill in the fall, but because authoritarians love using censorship to silence opposition, it's likely gonna keep rearing its head," the group added, referring to the legislation's failure to receive a Senate vote before the previous congressional term ended.
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After 'Backroom Deal' to Make Medicaid Cuts Even Worse, GOP Advances Budget Bill
"The only reason this vote passed tonight is because they've plotted behind closed doors to hurt even more families."
May 19, 2025
Republicans pushed their massive reconciliation bill through the House Budget Committee late Sunday after striking a deal with GOP hardliners who tanked a vote on the package late last week, complaining that the measure's proposed cuts to Medicaid and other programs were not sufficiently aggressive.
The final vote on Sunday was 17-16, with the four Republicans who voted against the bill on Friday switching their votes to "present," allowing the legislation to clear the committee.
Rep. Ralph Norman of South Carolina, one of the Republicans who switched his vote, said during Sunday's hearing that he is "excited about the changes we've made"—prompting Democratic committee members to ask, "What changes?"
"Do not be fooled," Democratic Rep. Stacey Plaskett of the U.S. Virgin Islands said Sunday. "The 'no' votes from certain Republicans on Friday were because the cuts were not fast or deep enough. In the back room, Republicans agreed to deeper and especially faster cuts to programs."
WATCH: Republicans admit they made a backroom deal to change their budget bill — but they won't tell the American people.
One thing is clear: the only reason this vote passed tonight is because they’ve plotted behind closed doors to make their health care cuts even worse. pic.twitter.com/BWeEHlafMq
— House Budget Committee Democrats (@HouseBudgetDems) May 19, 2025
Rep. Chip Roy (R-Texas) wrote in a social media post after joining Norman in voting "present" that "after a great deal of work and engagement over the weekend," the legislation "now will move Medicaid work requirements forward and reduces the availability of future subsidies under the green new scam"—a reference to clean energy tax credits established by the Inflation Reduction Act.
Roy and other Republican hardliners are also reportedly pursuing changes that could force states to end their Medicaid expansions, which would strip coverage from millions and potentially kill tens of thousands of people per year.
In its current form, the Republican reconciliation bill would inflict the largest cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) in U.S. history, slashing or eliminating benefits for millions by implementing strict work requirements and forcing many Medicaid recipients to pay more for coverage, among other changes—all while giving major tax breaks to the wealthy.
The legislation's Medicaid work requirements, which policy experts have condemned as cruel and ineffective, were slated to begin in 2029, but GOP hardliners want them to start immediately.
The changes sought by Roy, Norman, and other far-right Republicans must get through the House Rules Committee before the bill can reach the House floor. The GOP controls the panel, and both Roy and Norman are members.
Rep. Brendan Boyle (D-Pa.), the top Democrat on the House Budget Committee, said following Sunday's vote that "Republicans have spent months lying about their plan to make the largest cuts to healthcare and food assistance in American history."
"Kicking 13.7 million people off their healthcare apparently wasn't enough for House Republicans," Boyle added. "The only reason this vote passed tonight is because they've plotted behind closed doors to hurt even more families while refusing to share this backroom deal with the American people. This fight isn't over, and we're going to make sure every American knows exactly how they've been betrayed by Donald Trump and the Republican Party."
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CBO Report Confirms 'Republicans Are Lying' About Medicaid Cuts
"Their plan would force the largest Medicaid cuts in American history—all to pay for more tax giveaways to billionaires," said Democratic Rep. Brendan Boyle.
Mar 06, 2025
At a press conference last week, U.S. House Majority Leader Steve Scalise claimed Democrats are lying when they warn that Medicaid is in the Republican Party's crosshairs.
"The word Medicaid is not even in this bill," Scalise (R-La.) declared, waving the text of a budget resolution that House Republicans went on to pass over unified Democratic opposition.
But an analysis released late Wednesday by the nonpartisan Congressional Budget Office (CBO) makes clear that deep cuts to Medicaid would be required under the House GOP resolution, which President Donald Trump has endorsed.
The analysis, produced at the request of leading House Democrats, shows that Medicaid accounts for 93% of projected mandatory spending under the jurisdiction of the House Energy and Commerce Committee over the next decade, not including Medicare.
That means Republicans would have to cut Medicaid, the Children's Health Insurance Program (CHIP), or Medicare to achieve the $880 billion in spending reductions that the House budget resolution instructs the energy and commerce panel to impose between fiscal years 2025 and 2034.
"This analysis from the nonpartisan CBO confirms what we've been saying all along: Republicans are lying about their budget," said Rep. Brendan Boyle (D-Pa.), the top Democrat on the House Budget Committee. "Their plan would force the largest Medicaid cuts in American history—all to pay for more tax giveaways to billionaires."
I keep hearing Republicans claim their budget doesn't cut Medicaid. We all know that's a lie — so I asked the nonpartisan CBO to look into it. Their analysis confirms it: the Republican budget delivers the largest Medicaid cuts in history to pay for giveaways to billionaires.
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— Rep. Brendan Boyle (@congressmanboyle.bsky.social) March 5, 2025 at 5:45 PM
According to the CBO, just $135 billion in spending under the House Energy and Commerce Committee's jurisdiction over the next decade would be available for cuts when excluding Medicaid, Medicare, CHIP, and programs that are "budget-neutral with revenues offsetting spending."
That would leave the GOP far short of the $880 billion in energy and commerce spending reductions proposed in the House budget resolution, which still must make its way through the Republican-controlled Senate before the GOP can move ahead with Trump's legislative agenda.
The CBO's analysis comes a day after Trump neglected to mention Medicaid during his first address to Congress of his second term, a decision that one advocate said confirms the president "knows his plan to cut nearly $1 trillion from Medicaid is so deeply unpopular that he would rather sweep it under the rug."
Rep. Frank Pallone, Jr. (D-N.J.), the top Democrat on the House Energy and Commerce Committee, said Wednesday that the CBO analysis "confirms what we've been saying all along: The math doesn't work without devastating Medicaid cuts."
"The reality is the only way Republicans can cut at least $880 billion within the Energy and Commerce Committee's jurisdiction is by making deep, harmful cuts to Americans' healthcare," said Pallone. "Republicans know their spin is a lie, and the truth is they have no problem taking healthcare away from millions of Americans so that the rich can get richer and pay less in taxes than they already do."
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