A proposal by Republicans in Congress would allow President Donald Trump's administration to remove the tax-exempt status of nonprofits that it says support terrorism, creating what some nonprofits say is an arbitrary standard to financially punish charities that advocate for issues that don't align with his agenda.
Unusual language added Monday to a reconciliation bill from the House Ways and Means Committee - the tax-writing committee - would allow for terminating the tax-exempt status of groups the administration deems "terrorist supporting organizations." The language mirrors a bill from the last Congress that passed in the House but did not pass the Senate.
The definition and criteria for determining whether or how an organization supports terrorism are unclear. The bill also targets nonprofits in other ways, echoing complaints by Trump, who has called the tax-exempt status a "privilege" that has been "abused." Trump has threatened to revoke tax-exempt status for groups that don't abide by his directives or agree with his views.
GOP Rep. Jason Smith of Missouri, who chairs the Ways and Means panel, said during debate on the bill last fall that members of Congress "have the duty to make sure that taxpayers are not subsidizing terrorism." Smith didn't immediately respond to a message seeking further comment Tuesday.
House Republicans are conducting hearings this week for the so-called budget reconciliation process on various sections of the bill as a self-imposed Memorial Day deadline to pass Trump's tax breaks and spending cuts looms. Committees will then stitch the various sections together in what will become a massive package that is likely to include trillions of dollars in tax cuts.