Planned Parenthood decries executive power in pending House bill

National healthcare groups have signed on in opposition to a House bill that would soon grant President Donald Trump the ability to undermine nonprofits and remove their tax-exempt status, civil liberty organizations claim.

These groups, led by the American Civil Liberties Union (ACLU), say the Stop Terror-Financing and Tax Penalties on American Hostages Act introduces “broad and easily abused new powers for the executive branch” in a letter sent to congressional leaders in September.

A coalition of more than 130 organizations—including immigrant rights, press freedom, LGBTQ+ and health groups—argued in the letter the power goes too far, allowing an administration to hamstring nonprofits without providing a reason or evidence for designating a group a terrorist organization.

The bill allows the secretary of the Treasury to terminate the tax-exempt status of “terrorist supporting” organizations. Also included is a policy relaxing taxing deadlines and penalties for American hostages, a provision these organizations do not oppose.

“You’re giving someone the power to crush dissenting groups without any real due process,” said Kia Hamadanchy, senior policy counsel to the ACLU, in an interview with Fierce Healthcare.

Enough Democrats voted against the legislation on Tuesday to temporarily halt the bill under suspension of the rules. It was voted down by 145 Democrats and one Republican but still achieved majority support. It will be put forward again during a Committee on Rules markup hearing on Monday, the Intercept reported. This time, however, the bill just needs a majority approval for its passage before it would then head to the Senate.

Hamadanchy said he expects a vote on Monday to yield similar results as the tally this week.

Groups opposing the bill include the ACLU, Planned Parenthood of America, the NAACP, the National Network of Abortion Funds, the National LGBTQ Task Force Action Fund, Reproductive Freedom for All and others.

Rep. Lloyd Doggett, D-Texas, previously supported the bill but now worries the power it grants Trump makes the legislation dangerous given his past rhetoric. He likened the bill to a “death penalty” for any nonprofit Trump may ideologically oppose.

“In this mislabeled bill, House Republicans are hiding behind hostages as they rush to reconsider a proposal that is designed solely to grant Trump more and more power to carry out retribution against those he perceives as opponents,” Doggett said in a statement to Fierce Healthcare. “Throughout this Congress, many extremist Republicans have attacked organizations supporting access to necessary abortion care and even vaccinations. With this legislation, Trump would be empowered to intimidate any nonprofit organization, including some hospitals and clinics, which were not following his agenda.”

Nonprofits would have 90 days to appeal the terrorist designation to the Treasury secretary—a cabinet position Trump has not yet nominated—and an IRS review board.

But even a temporary designation could be devastating for a nonprofit’s reputation and finances, said Hamadanchy. This includes any public relations fallout and court fees in addition to other considerations.

“Donors are not going to want to give you money because they don’t want to get into the controversy, but also they might be afraid that if they give you money, they’re going to be accused of supporting terrorism,” he said. “You will get your day in court ultimately, but that designation itself might be the end of the road for you.”

House Republicans, meanwhile, criticized Democrats for their unwillingness to advance the bill this week, break down bureaucracy and thwart terrorism.

“Under current law, an entity’s tax-exempt status may be suspended if it is designated by the Department of State as a terrorist organization, but current law does not allow the IRS to suspend the tax-exempt status of organizations identified as having provided material support or resources to a designated terrorist or terrorist-supporting organization,” a one-pager (PDF) distributed from the House Ways and Means Committee explained.

Throughout his campaign, Trump has referred to his domestic adversaries and critics as the “enemies from within” and took credit for appointing two Supreme Court justices responsible for overturning Roe v. Wade, thereby putting abortion rights in the hands of states.

Trump nominated Robert F. Kennedy Jr. for Department of Health and Human Services secretary, a public figure most well known for his views on vaccines. It remains to be seen whether he will earn Senate approval to the position or whether Trump will attempt to push through his nomination by a recess appointment.

“To those who say this bill only applies to groups who are supporting terrorism, consider how expansive that term can be,” Doggett said on the House floor Tuesday.

He said the bill could be deployed to target think tanks or healthcare nonprofits Trump may ideologically disagree with, such as Planned Parenthood or a “disability rights group that is objecting to Trump’s interference with the Affordable Care Act.”

Rep. Adam Schiff, D-California, and a high-profile Trump critic, supported the bill on Tuesday. Rep. Dina Titus, D-Nevada, retracted her support after initially co-sponsoring the bill, while Rep. Thomas Massie, R-Kentucky, was the sole Republican to vote “nay.”

“The bill contains provisions I support that provide essential tax relief to Americans wrongfully detained and held hostage, but I voted against it in light of recent concerns that the provisions added by Republicans related to non-profit tax-exempt status could be abused by a future administration,” said Titus in a statement following the vote.

Schiff and Massie did not respond to a request for comment.

Hamadanchy said more members need to be educated on why the bill could be damaging under any presidential administration, but some Democrats are likely still supporting the bill because of the hostage provisions.

“The Democrats’ attacks against this legislation ring particularly hollow given that this bill passed with unanimous support through the Ways & Means Committee on two separate occasions and includes policies already approved with broad bipartisan support in the House of Representatives earlier this year by an overwhelming margin of 382-11,” said Jason Smith, chairman of the committee, following the vote this week.