Last week the House of Representatives passed a dangerous bill that would allow the Secretary of Treasury to strip a U.S. nonprofit of its tax-exempt status. If it passes the Senate and is signed into law, H.R. 9495 would give broad and easily abused new powers to the executive branch. Nonprofits would not have a meaningful opportunity to defend themselves, and could be targeted without disclosing the reasons or evidence for the decision.
This bill is an existential threat to nonprofits of all stripes. Future administrations could weaponize the powers in this bill to target nonprofits on either end of the political spectrum. Even if they are not targeted, the threat alone could chill the activities of some nonprofit organizations.
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