On Thursday, the United States House of Representatives approved legislation that would threaten nonprofit organizations’ exercise of free speech rights. The legislation would accomplish this goal by empowering the US government to selectively clamp down on nonprofits to an extent that targeted organizations may cease to exist. This is all being done in the name of countering terrorism, a trusty standby excuse for the US government exercising authoritarian powers.
The House approved the Stop Terror-Financing and Tax Penalties on American Hostages Act (HR 9495) by a vote of 219 to 184. The “yes” votes came mainly from Republican members, and all the “no” votes were from Democrats plus Kentucky Republican Thomas Massie, an Advisory Board member for the Ron Paul Institute.
J.D. Tuccille provided an informative critique of HR 9495 in a Friday Reason article. The bill, explained Tuccille, “allows for the ‘termination of tax-exempt status of terrorist supporting organizations.’” Continuing, Tuccille wrote:
The designation of organizations as such is left to the discretion of the Secretary of the Treasury, based on that official’s judgment that a non-profit group has, in the last three years, provided ‘material support or resources’ to what the U.S. government considers a terrorist organization. The language provides for a 90-day window during which time supposed ‘terrorist supporting organizations’ can appeal the designation, but the burden is on them to prove that they’re not guilty.
This turns due process on its head.
The threat from this new bureaucratic power is extreme for targeted organizations. As Tuccille puts it in his article, the loss of “tax -exempt status” is essentially a death penalty for most non-profit organizations.”
What a censorship power this legislation hands over to the executive branch bureaucracy. Nonprofit organizations whose activities challenge the ambitions of the US government and connected individuals, businesses, and organizations, can be snuffed out. Meanwhile, other organizations will have a big incentive to limit their own speech to avoid being similarly targeted for destruction.
During the House floor debate on HR 9495, Rep. Mark Takano (D-CA) presented a brief, persuasive speech against the bill. Here is the text of his speech:
Mr. Speaker, I rise in strong opposition to H.R. 9495. As Members of Congress, it is our duty to stand against terrorism and stand up for our common values, but this bill does neither.
What does it do?
What it does is grant sweeping draconian powers to the executive branch to essentially shut down any nonprofit.
On what basis would future administrations, Democratic or Republican, be able to exercise such power?
On a mere accusation.
I repeat, an accusation.
All nonprofits could be under scrutiny. These are decent people who are advocating on issues from religious freedom to animal welfare.
Mr. Speaker, why would conservatives, the very same people who gnashed their teeth at executive overreach, support such a measure?
Why would they suddenly about-face and sacrifice the values they claim to stand for?
It is because this is a gift to the President-elect, Mr. Trump, wrapped up in a bow right before the holidays.
On the campaign trail, he has made no secret of who he would seek to go after. This is bigger than the President-elect because now every President who would be king would be free to seek vengeance on their political opponents for every perceived slight.
I caution my colleagues to consider how far-reaching the consequences of this bill would be. This bill would apply to all future Presidents.
At a time when we should be strengthening our checks and balances and shoring up our guardrails, this legislation would do the opposite.
Mr. Speaker, in the strongest possible terms, I urge my colleagues to vote against this executive branch power grab.
This legislative threat to nonprofit organizations and their free speech can be expected to be rejected by the Democratic controlled Senate and President Joe Biden. But, it will likely be back for another go-round under more amenable conditions come January when the House, Senate, and presidency are all in Republican control.
