By Matthew Yoshimoto

A bill which many nonprofits fear would allow the Trump administration to strip organizations of their tax-exempt status simply because he disagrees with them is set to face a vote in Congress as early as today.

H.R. 9495, introduced as anti-terrorism legislation, has drawn sharp criticism from advocacy groups and civil society leaders who warn it could grant the Treasury Secretary unchecked power to label nonprofits as “terrorist-affiliated” organizations.

The so-called “nonprofit killer” bill, titled the Stop Terror-Financing and Tax Penalties on American Hostages Act, would grant the government extensive authority to impose sanctions on civil society organizations. Critics argue the bill’s vague criteria and lack of due process protections would enable selective targeting of organizations, particularly those advocating for Asian American, Pacific Islander, Muslim, Arab and other communities. 

Groups like Stop AAPI Hate are mobilizing against the measure, calling it a direct threat to the freedoms of speech and association.

“Civil society is the last line of defense between marginalized communities and the attacks against our rights, our freedoms, and our safety under Trumpism,” reads a statement from Stop AAPI Hate. “We cannot let H.R. 9495 stand in the way of our fight for a safer, more equitable future.”

The Heart Mountain Wyoming Foundation, dedicated to preserving the history of Japanese American incarceration during World War II, also expressed alarm. Ray Locker, the foundation’s Communications and Strategy Director, highlighted parallels between the bill’s provisions and historical abuses of government authority. “All that needed to happen was for a handful of federal officials to decide that 125,000 Japanese Americans were potential terrorists and thereby deserving of being imprisoned without trial,” Locker noted.

The foundation warned that losing tax-exempt status would jeopardize nonprofits’ ability to operate and serve their communities. Locker expressed hope that Congress will determine the bill goes “too far” and reject it.

Other organizations, including the Equal Justice Society and Cal Nonprofits, are raising concerns about the bill’s procedural flaws. They point to provisions that shift the burden of proof onto nonprofits, requiring them to defend themselves within 90 days of designation—without requiring the Secretary to share their full evidence or reasoning.

“The lack of due process protections should be concerning to all Americans and not just nonprofit organizations,” said a spokesperson for Cal Nonprofits.