A bill that would choke off funding for terror-supporting nonprofits has stalled in Congress — amid the lies of its potential targets.The Stop Terror-Financing and Tax Penalties on American Hostages Act, HR 9495, passed the House last month. Critics have labeled the legislation a “nonprofit killer,” intentionally misleading both the public and lawmakers about its specifics in an effort to derail it.One of its loudest opponents is the Council on American-Islamic Relations, which has painted the legislation as “nefarious” and warned it will do catastrophic harm to charities.CAIR claims the bill strips nonprofits of due process.In reality, the legislation’s due process safeguards, including formal notifications, response periods and judicial reviews, are designed to prevent arbitrary or unjust actions against innocent charities.HR 9495 would allow the secretary of the treasury to designate organizations as “terrorist-supporting” if they knowingly provide material support to foreign terrorist organizations — and to strip such groups of their valuable tax-exempt status.But before making any designation, the department must notify the organization in writing, clearly outlining the allegations.
The charity then has 90 days to respond, rectify issues or contest the claims. Only if these conditions are unmet does the designation take effect. The bill also provides avenues for judicial appeals and administrative reviews.This legislation does not indiscriminately target nonprofits, but safeguards the integrity of a sector that is vital to American civil society.Tax-exempt status is a privilege granted to organizations that serve the public good.By closing loopholes and holding bad actors accountable, HR 9495 ensures that this privilege is not exploited, enabling legitimate charities to continue their critical work without fear of reputational harm.The legislation also includes humanitarian provisions aimed at aiding US nationals wrongfully detained abro...