(WASHINGTON) – PEN America is deeply alarmed over passage by the House of Representatives today of a bill that would allow the Treasury Secretary to make a unilateral determination to revoke the tax-exempt status of any 501c3 organization by designating them as supporting terrorism. The bill could have far-reaching implications for nonprofit organizations across the political spectrum.
The bill passed 219-184, according to the Associated Press.
H.R.9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act, would allow the Treasury Secretary, at his or her discretion, to designate section 501(c) nonprofits as “terrorist supporting organizations” without requiring the Secretary to share their full evidence or reasoning with accused nonprofits. The designation itself is not only vaguely defined but absent meaningful due process.
Providing material support to a terrorist organization is already illegal under federal law. Allowing the Treasury Secretary to create an added legal and administrative burden on nonprofit organizations may also lead to the chilling of free expression.
Laura Schroeder, PEN America’s Congressional advocacy lead, said: “PEN America fights authoritarian practices around the world that stifle free expression. We are alarmed that H.R.9495 comes directly from this playbook by weaponizing the federal government against civil society. Given its vague definition of “terrorist supporting organizations” and the wide discretion given to the Treasury Secretary, we urge the Senate to reject this dangerous legislation which would undermine Constitutional protections including the First Amendment.”
About PEN America
PEN America stands at the intersection of literature and human rights to protect free expression in the United States and worldwide. We champion the freedom to write, recognizing the power of the word to transform the world. Our mission is to unite writers and their allies to celebrate creative expression and defend the liberties that make it possible. Learn more at pen.org.
Contact: Suzanne Trimel, [email protected], (201) 247-5057