Proposed national security bill raises civil liberties concerns over nonprofit tax status authority
Legislation would allow Treasury Secretary to revoke tax-exempt status without criminal prosecution
WASHINGTON, United States (MNTV) – A proposed U.S. anti-terrorism bill has raised concerns among civil liberties advocates after advancing provisions that could allow the federal government to revoke the tax-exempt status of nonprofit organizations, including news outlets, if they are deemed to be “terrorist supporting.”
The legislation, which has already passed the House with bipartisan support and is expected to return to the Senate in revised form, would grant the Treasury Secretary authority to strip nonprofit status without requiring criminal prosecution or formal terrorist designation. Critics argue this expands executive discretion in ways that could bypass traditional legal safeguards.
Supporters of the bill frame it as a national security measure aimed at preventing indirect financing or support of terrorist organizations. However, opponents say the definition of “material support” under existing law is already broad and vulnerable to political interpretation, and warn that the new measure could further blur the line between security enforcement and protected speech.
The debate has intensified following recent political accusations targeting major media organizations, including The New York Times, Reuters, CNN, and The Associated Press, over their interactions with Palestinian freelance journalists in Gaza. Some lawmakers suggested that such professional relationships could constitute indirect support for Hamas, though these claims have not been substantiated in court.
Civil liberties groups and press freedom advocates argue that such interpretations risk extending terrorism statutes into journalistic activity, potentially chilling reporting on conflict zones and foreign policy.
They also note that courts have historically expressed caution over applying material support laws to speech and media work, particularly where intent is not clearly established.
The legislation has also drawn scrutiny for its potential overlap with broader political efforts to examine nonprofit organizations, including student groups and advocacy organizations, under national security frameworks. Critics say this reflects a growing trend of expanding regulatory pressure on civil society institutions through counterterrorism policy tools.
Members of Congress supporting the bill argue it strengthens oversight and prevents abuse of nonprofit structures by foreign-linked entities.
However, opponents warn that the combination of expanded executive authority and vague enforcement standards could create a chilling effect on investigative journalism and nonprofit advocacy work.
The proposal remains under consideration as part of broader national security legislation, with further debate expected in the Senate.