Tomorrow, Thursday, November 21, 2024, the United States House of Representatives will vote on the Stop Terror-Financing and Tax Penalties on American Hostages Act (H.R. 9495). While the bill claims to strengthen tools against terrorism financing, it includes dangerous provisions that could harm nonprofits, free speech, and democracy itself.   

H.R. 9495 gives the Secretary of the Treasury broad and unchecked authority to revoke the tax-exempt status of any nonprofit accused of supporting terrorist activities, even without clear evidence or intent. This expansive power could be used to silence dissent, target political opponents, and chill nonprofit advocacy through fear of stigma, legal fees, and loss of funding.

The potential for overreach, subjective application, and abuse of this legislation is enormous, and the consequences for organizations and the people they serve cannot be overstated.

As nonprofits, we have the right under the 1st amendment to protest and advocate for or against legislation that will directly impact our sector, and with this bill, this right is at risk. We need your support to mobilize your communities to contact their representatives and encourage them to vote NO on H.R. 9495.

Why does this matter?

• The timeline is urgent: The House is scheduled to vote on HR 9495 this Thursday, November 20. Time is of the essence on this urgent and critical issue.
• If no votes are flipped, HR 9495 stands to pass:
  • Last week’s vote needed a 2/3 majority to pass. This time, it only needs a simple majority. If the 52 Democrats who voted yes last week keep their vote the same this week, the bill will pass this week.
  • All four Utah Representatives voted to support the bill; we are urging them to vote NO tomorrow.
• HR 9495 may be well intentioned but would cause extreme harm to nonprofits: Stopping bad actors from using nonprofits to fund terrorism is a critical public policy goal, but this legislation creates redundancies, confusion, and has potential for serious abuse.
• HR 9495 erodes due process: Section 4 allows the U.S. Treasury Secretary to designate nonprofits as “terrorist-supporting organizations” without full transparency. Accused organizations are only given 90 days to prove their innocence, undermining constitutional protections.
• HR 9495 threatens nonprofits reputation and operations: Even if an organization successfully contests the designation, the damage to its reputation, donor trust, and access to financial services could be irreparable.
• HR 9495 harms vulnerable communities: Nonprofits providing humanitarian aid in conflict zones could lose tax-exempt status, putting critical assistance at risk.

Take Action

UNA strongly encourages Utah nonprofits to contact your Representatives urge them to change their votes to NO on HR 9495.

Sample Script

Hi, my name is [Your Name], and I’m a constituent from [City/State]. I’m calling to urge you to oppose H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act, scheduled for a vote later today. 

This bill poses a direct threat to nonprofits by granting the Treasury Secretary unchecked power to label organizations as “terrorist supporting” and strip their tax-exempt status. Even worse, this can happen without evidence, intentional links, or any requirement to disclose the reasons for the designation. The lack of due process and accountability leaves nonprofits defenseless against vague and potentially politically motivated accusations. 

While the bill includes provisions for tax relief for American hostages—a noble cause—this should not come at the expense of jeopardizing nonprofit operations and democratic values. These provisions should be separated into their own bill that doesn’t include the unchecked harm to nonprofits. 

Please oppose H.R. 9495 to protect nonprofits and the communities they serve. Thank you for your time and consideration. 

Sincerely,  
[Your Name]