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A bill that opponents argue could grant the Trump administration the power to revoke tax-exempt status from nonprofits has passed through the U.S. House of Representatives, despite some Democratic lawmakers backing away from the measure.
The “Stop Terror-Financing and Tax Penalties on American Hostages Act” initially gained support from Rep. Gabe Vasquez (D-N.M.) and other Democrats. Vasquez explained his initial backing stemmed from a provision in the bill that would allow the Internal Revenue Service (IRS) to waive penalties and back taxes for individuals wrongfully detained abroad.
However, following significant backlash over a controversial provision in the bill, Vasquez and other Democrats withdrew their support. Critics voiced concerns that the bill would grant the U.S. Treasury secretary the power to revoke the tax-exempt status of nonprofits deemed to be “terrorist-supporting organizations.”
Opponents of the legislation include the ACLU, NAACP, Greenpeace USA, and Planned Parenthood, which argued in a letter to Congress that the bill posed a “high risk of politicized and discriminatory enforcement.”
The bill passed the House with a vote of 219-184, largely along party lines. Fifteen Democrats supported the measure, while one Republican voted against it. All three of New Mexico’s House members voted against the bill. The legislation now moves to the U.S. Senate for further consideration.
