FOR IMMEDIATE RELEASE
[November 21, 2024] MLFA Responds to Passage of HR 9495: A Threat to Civil Rights and Nonprofit Advocacy
The Muslim Legal Fund of America (MLFA), a Muslim social justice nonprofit organization, expresses grave concern over the passage of HR 9495, Stop Terror-Financing and Tax Penalties on American Hostages Act, which has now officially passed (as of Thursday, Nov. 21). As a Muslim social justice nonprofit organization, our fear is that Trump, who has publicly stated his interest and willingness to punish his perceived political opponents, will use the bill to target and silence any organization he disagrees with.
Under the bill, the Treasury secretary would issue notice to a group and its intent to designate it as a “terrorist-supporting organization.” Once notified, an organization would have the right to appeal and prove its innocence within 90 days, after which it would be stripped of its IRS 501(c)(3) tax-exempt status. The law would not require officials to explain the reason for designating a group as a “terrorist-supporting organization,” nor does it require the Treasury Department to provide evidence. It empowers the Treasury secretary to target any group it wants as a terror supporter and block their ability to be a nonprofit without adequate due process.
Because this bill paired providing tax relief for U.S. nationals and their spouses who are unlawfully or wrongfully detained or held hostage abroad with the language to terminate the tax-exempt status of “terrorist-supporting” groups, it essentially coerced Congress to pass it because no one wants to be seen as opposing tax breaks for U.S. hostages and prisoners abroad.
In the aftermath of widespread Pro-Palestinian university campus encampments, the bill is seen as an attempt to silence outspoken critics of U.S. support for Israel’s ongoing slaughter and starvation of Palestinians in Gaza, which has led to a genocide case against the Israeli government at the International Court of Justice. But this danger is much broader than foreign policy, it can and will have an effect on civil rights groups, pro-choice groups, immigration and asylum groups, and even environmental groups.
If and when this bill becomes law, MLFA’s Legal Division will continue to represent our clients across the country in federal courts, in federal law enforcement investigations, before federal administrative agencies, and through nonprofit compliance training to guarantee their rights fully under the law. MLFA will persist in fighting against the U.S. government’s attacks on constitutionally protected rights such as freedom of speech and the free exercise of religion that are often deeply rooted in an anti-Muslim bias. We agree this bill does not limit its reach to any one group, and it may have wide-reaching ramifications for many nonprofit organizations supporting any religious, national origin, or other specific interest or viewpoint.
