The Stop Terror-Financing and Tax Penalties on American Hostages Act (H.R. 9495) grants the Treasury secretary unilateral authority to label nonprofits as “terrorist supporting organizations” and strip them of their tax-exempt status without due process. The measure passed the House on Thursday, Nov. 21, in a 219-184 vote.
By: Stacy M. Brown, NNPA
Donald Trump has openly declared he would rule as a dictator from his first day in office. Astonishingly, 15 House Democrats joined Republicans in passing a bill many say could empower Trump to do just that. The Stop Terror-Financing and Tax Penalties on American Hostages Act (H.R. 9495) grants the Treasury secretary unilateral authority to label nonprofits as “terrorist supporting organizations” and strip them of their tax-exempt status without due process. The measure passed the House on Thursday, Nov. 21, in a 219-184 vote.
Critics argue the legislation opens the door for abuse, with devastating consequences for free speech and democracy. Rep. Lloyd Doggett, D-Texas, called the bill a step toward authoritarianism. “A tyrant tightens his grip not just by seizing power but by demanding new powers and when those who can stop him willingly cede and bend to his will.”
The provision has been compared to laws used by authoritarian regimes in countries like Hungary and Nicaragua, where similar measures have silenced dissent and forced aid organizations to close. Critics say it would allow any president to target nonprofits arbitrarily, bypassing judicial safeguards already in place.
The bill combines unrelated measures and includes tax-relief provisions for Americans held unjustly abroad. Opponents note that those provisions could easily be passed as standalone legislation without granting the Treasury Department new powers.
“This is not about fighting terrorism—it’s about handing Donald Trump the authority to decide who is a terrorist,” Doggett said. “Our democracy is under threat.”
Despite clear warnings, 15 Democrats supported the measure, joining Republicans to advance what civil rights advocates have described as a “dictator’s dream.” Reps. Henry Cuellar, D-Texas, and Jared Golden, D-Maine, are among those facing backlash for their votes. Critics have also called out House Minority Leader Hakeem Jeffries, D-N.Y., for failing to rally his caucus more forcefully against the bill, though he voted against it.
Rep. Jim McGovern, D-Mass., expressed disbelief at the decision to hand such power to an incoming Trump administration. “The road to fascism is paved with a million little votes that slowly erode our democracy and make it easier to go after anyone who disagrees with the government,” McGovern remarked.
The American Civil Liberties Union (ACLU), along with over 180 organizations including Planned Parenthood and the NAACP, issued a scathing rebuke of the bill. They warned it could allow the Treasury to shut down nonprofits and aid organizations with little to no evidence.
Abby Maxman, CEO of Oxfam America, said similar laws in Nicaragua forced humanitarian groups to cease operations within days, leaving thousands without essential aid. “We have policies in place to ensure the assistance we provide gets to those in need,” Maxman remarked to reporters. “But all it takes is a sentence or a headline to associate an organization like ours with accusations that could ruin us.”
Some of the bill’s proponents have even acknowledged the risks. Rep. Brad Schneider, D-Ill., proposed amendments to strengthen safeguards for nonprofits but stopped short of opposing the measure entirely. Critics, however, remain adamant that the bill represents an unnecessary and dangerous expansion of executive power.
“This legislation is not about terrorism,” Doggett concluded as the bill now heads to the Senate. “It’s about empowering one man to destroy the organizations and voices he dislikes. This bill hands over unchecked power. That’s not democracy—it’s tyranny.”
