The US House passed the Stop Terror-Financing and Tax Penalties on American Hostages Act (HR 9495), allowing the Treasury Department to revoke tax-exempt status from organizations deemed to support terrorism. Critics fear it will target pro-Palestinian groups.
The bill passed 219-184, with 15 Democrats in support. It gives the Treasury Secretary power to label organizations as terrorist supporters without explanation, allowing them to appeal the decision.
Civil liberties groups condemned the bill, saying it could be used against pro-Palestinian groups and aid organizations in Gaza, where the war has caused significant loss of life.
The bill now heads to the Senate, where it faces uncertainty, but could be revived under a future Republican majority.
Initially supported by both parties, concerns have grown that the bill could be misused by a future administration to target groups advocating for Palestinian rights.
