JustLeadershipUSA Opposes Danger Posed in the House Ways and Means Budget Bill

The Proposed Language in Section 112209, “Termination of Tax-Exempt Status of Terrorist-Supporting Organizations,” Is Deeply Troubling and Should Be Excluded

As Congress moves forward with its budget, JustLeadershipUSA (JLUSA) issues this statement in response to the language put forward in Section 112209, “Termination of Tax-Exempt Status of Terrorist-Supporting Organizations”:

JustLeadershipUSA stands firmly with other justice-seeking nonprofit organizations to strongly push back against the language and rhetoric of Section 112209 in the current House Ways and Means Budget Bill. This language is dangerous, because it would open the door to unconstitutional restrictions on free speech, and could easily be weaponized against criminal justice reform organizations and the network of organizations in the JustUS Coordinating Council whose missions incorporate civil rights and social justice.

The bill would grant the administration the ability to designate any nonprofit as a “terrorist-supporting organization” without providing justification, while suspending their tax-exempt status if the administration finds that the organization has provided vaguely defined “material support or resources” to a terrorist group. This represents an unlawful infringement and possible elimination of the constitutional due process protections guaranteed to every citizen, being codified under the guise of a change in the tax codes.

In addition to being unconstitutional, it is unnecessary, because the government already has broad authority to prohibit transactions with people and entities it deems connected to terrorism. Nonprofit organizations are already prohibited from providing material support for terrorist organizations. This would also eliminate due process—which we’ve already begun to see happening—stripping a nonprofit’s tax-exempt status without giving it a meaningful opportunity to defend itself in court.

Considering the remarkable lack of legal safeguards, the potential for abuse under this provision is incredibly high. Organizations targeted now or in the future like this would experience irreparable harm given the staggering cost of legal fees and protracted litigation to defend itself, and the public stigma of being branded in this way.

As noted by the National Council of Nonprofits, “The charitable nonprofit sector is vital to the success of democracy in America; the rights of the people to gather through them to speak freely about public policies is essential to our country’s future.” The proposed language represents an assault on the pillars and underpinnings of our democracy that separates our society (country) from the non-democratic dictatorships in other parts of the world.

For these reasons—and more—JLUSA calls on everyone in our alumni leadership network, JustUS Coordinating Council partner organizations, and others to speak out and stand firm against this attack on our existence as nonprofit organizations pursuing safety and justice for all.

Learn more about how we are elevating issues impacting the 70+ million Americans with lived experience at the Federal level through the JustUS Coordinating Council (JCC) at justuscc.org.