By Matthew Yoshimoto
As debates over free speech intensify in the aftermath of the election, Sonali Kolhatkar, the host of Rising Up With Sonali, warns of a “chilling” future if the so-called “nonprofit killer bill” is passed. The proposed legislation, she argues, could weaponize free speech restrictions to silence nonprofits advocating for marginalized communities, leaving grassroots activism vulnerable to political elites.
Originally introduced as a measure to curb pro-Palestinian voices, according to Kolhatkar, the bill has faced strong criticism from civil rights advocates, especially with Donald Trump set to become president. Kolhatkar highlights prior bipartisan support for the bill, noting that Democratic legislators have only recently recognized the dangers it poses and how it could “really change the political landscape of the U.S.” if passed.
The bill, H.R. 9495, formally titled the “Stop Terror-Financing and Tax Penalties on American Hostages Act,” was introduced in the House on Sept. 9 and passed on Nov. 21. It passed with 219 votes in favor and 184 against, largely along party lines, with Republicans in support and the majority of Democrats opposed.
It now awaits consideration in the Senate, which has yet to schedule a vote. Should the Senate fail to act during this session, the bill could be reintroduced in the next Congress, set to begin in January 2025, further worrying advocacy groups amid the upcoming Trump administration.
“We’re going to see Republicans attempting to rewrite the political landscape to their heart’s content, and the only thing that are going to be standing in the way of that is the Democratic minority,” Kolhatkar told AsAmNews. “It is a terrifying time—I don’t know how we convince ourselves to keep getting up and fighting back, but we have to.”
Kolhatkar warns that the bill’s vague criteria and lack of due process would give the government broad power to target any civil society organization. Its most controversial provision allows the Treasury Secretary to unilaterally designate groups as “terrorist-affiliated,” stripping them of tax-exempt status. This, Kolhatkar argues, could stifle free speech and devastate nonprofits, particularly those serving marginalized communities including Asian American and Pacific Islander groups.
She emphasized that the Treasury Secretary, appointed by the president, could turn the position into a political tool. “In the hands of Donald Trump, it would absolutely become a bludgeon. There’s nothing to stop the line of command between the President and the Treasury Secretary from coordinating with one another to ensure that their political enemies get stripped of their nonprofit status—it’s crazy.”
Ray Locker, Communications and Strategy Director of the Heart Mountain Wyoming Foundation, expressed concern that H.R. 9495 could label nonprofits as supporters of terrorism without following existing legal processes. He warned that the bill’s overreach could lead to abuses of power, drawing parallels to the unjust treatment faced by Japanese Americans during World War II.
While acknowledging that some nonprofits have been used to funnel money to terrorist organizations, Locker emphasized that his organization supports existing laws to address this issue. However, he argued that H.R. 9495 is overly broad and allows actions without evidence. He stressed the need for provisions to ensure greater transparency, require more evidence to support claims and improve the appeals process.
“In the worst cases, the bill would jeopardize the ability of nonprofits working in these areas. They would operate in an environment of fear and mistrust, and their effectiveness would have been compromised,” Locker told AsAmNews. “We believe the bill would have had a chilling effect on groups operating in this area.”