Overview

• House Republicans have included a clause in their draft budget reconciliation bill granting President Trump authority to revoke the tax-exempt status of nonprofits labeled as 'terrorist supporters.'
• Critics highlight the lack of clear definitions or criteria for what constitutes 'terrorist support,' warning of potential abuse and arbitrary enforcement.
• The provision revives a stalled 2024 House bill and could pass with a simple majority under the reconciliation process, bypassing the need for bipartisan support.
• Advocacy groups fear the measure could be used to target organizations addressing reproductive rights, climate change, racial justice, and other politically sensitive issues.
• Additional GOP provisions in the bill propose increased taxes on foundation endowments and mandate corporate charitable giving thresholds for tax deductions.