MCN urges nonprofits to contact Rep. Angie Craig to vote NO on H.R.9495

The Minnesota Council of Nonprofits (MCN) is tracking H.R.9495, a bill in Congress that could seriously harm nonprofits and has received renewed attention this week.

The potential for overreach, subjective application, and abuse of this legislation is enormous, and the consequences for organizations and the people they serve cannot be overstated. 

Legislation is moving in Congress that threatens the nonprofit sector’s ability to serve communities fairly and effectively. While the Stop Terror-Financing and Tax Penalties on American Hostages Act (HR 9495) was defeated in the US House of Representatives last week just nine votes short of passing at the needed two-thirds majority, the bill was back yesterday and was passed by the House Rules Committee.

The bill includes language that would allow the U.S. Secretary of the Treasury (a single person) to designate a nonprofit as a terrorist-supporting organization and yank its exempt status and possibly shut it down.

It was tacked to the bottom of a bill in the U.S. House of Representatives that would provide tax relief to Americans held hostage and is expected to be brought to the House floor on Wednesday morning (11/20) or Thursday (11/21).

This time, the bill will only need a simple majority to pass the House, not two-thirds that was required when it went to the House Floor last week under the so-called “Suspension of the Rules,” in effect, bypassing the House Rules Committee.

Why does this matter?

  • The timeline is urgent: According to the schedule of Majority Leader Steve Scalise, the HR 9495 vote could happen as early as Wednesday morning (11/20), though it could happen on Thursday (11/21). Time is of the essence on this urgent and critical issue.
  • If no votes are flipped, HR 9495 stands to pass:
    • Last week’s vote needed a 2/3 majority to pass. This time, it only needs a simple majority. If the 52 Democrats who voted yes last week keep their vote the same this week, the bill will pass this week.
    • US Minnesota Rep Angie Craig voted “yes” last week. We are urging her to change her vote and vote “NO” this week.
  • HR 9495 may be well intentioned but would cause extreme harm to nonprofits: Stopping bad actors from using nonprofits to fund terrorism is a critical public policy goal, but this legislation creates redundancies, confusion, and has potential for serious abuse.
  • HR 9495 erodes due process: Section 4 allows the U.S. Treasury Secretary to designate nonprofits as “terrorist-supporting organizations” without full transparency. Accused organizations are only given 90 days to prove their innocence, undermining constitutional protections.
  • HR 9495 threatens nonprofits reputation and operations: Even if an organization successfully contests the designation, the damage to its reputation, donor trust, and access to financial services could be irreparable.
  • HR 9495 harms vulnerable communities: Nonprofits providing humanitarian aid in conflict zones could lose tax-exempt status, putting critical assistance at risk.

What is MCN asking of Minnesota nonprofits?

U.S. Rep. Angie Craig (D-MN-2nd Congressional District) voted to support this bill last week when it was heard last week.

With H.R. 9495 is expected to be voted on in the House of Representatives as early as Wednesday morning (11/20), or Thursday (11/21), MCN is asking for your help in rallying the nonprofit sector and our stakeholders today with these simple steps:

Step One: Contact Rep. Craig and urge her to vote NO on H.R.9495

Minnesota U.S. Rep. Angie Craig (D-MN-2nd Congressional District) voted to support this bill last week when it was heard last week. The bill failed 256-145, but will likely be heard again during the week of November 18-22, 2025. 

MCN strongly encourages Minnesota nonprofits to contact Rep. Craig’s office and urge her to change her vote to NO when H.R.9495 again goes to the House floor later this week. 

The vote was largely along party lines, and among Minnesota’s Congressional members Rep. Craig is the only Democrat to have voted in favor of the bill. While we are focusing our efforts on Rep. Craig’s office, we will be connecting with all 8 of Minnesota’s members of the U.S. House of Representatives, and urge you to do so if you are able!

Sample Email Script

SUBJECT LINE: Vote NO on HR 9495

Dear Representative Craig,

The U.S. House of Representatives is preparing to reconsider H.R. 9495, legislation that would empower the U.S. Treasury Secretary to unilaterally deem nonprofits as terrorist-supporting organizations and revoke their tax exemptions with little due process. This bill failed to pass the House on November 12, but the House is planning to take it up again starting November 18.

H.R. 9495, the “Stop Terror-Financing and Tax Penalties on American Hostages Act,” purports to stop bad actors from using nonprofit organizations to fund terrorism, as is already prohibited under current law. It also includes some laudable provisions to extend tax deadlines for those unlawfully or wrongfully detained or held hostage abroad.

But H.R. 9495 goes much, much farther, building on provisions in previous legislation, H.R. 6408, to empower the Secretary of Treasury to designate 501(c) organizations as “terrorist supporting organizations” and revoke their tax-exempt status with minimal due process. It would allow the Secretary to bring such accusations without disclosing the evidence behind them and would place the burden of proof on the organization to disprove the allegations. The potential for overreach, subjective application, and abuse of this authority is enormous, and the consequences for organizations and the people they serve cannot be overstated. 

Representative Craig, we urge you to vote NO when HR 9495 again goes to the House Floor later this week.

Sincerely,
Name and Nonprofit Organization (mention if you or your org are constituents in Congressional District 2)

Sample Phone Script

Hello, my name is _______ and I work at _________, and [describe your connection to Rep Craig’s district — maybe you’re a constituent, or your nonprofit does work in her district].

I’m calling to urge Rep Craig to change her vote NO on HR 9495. This bill could be extremely detrimental to the nonprofit sector.

CONTACT INFO FOR REP CRAIG’S OFFICE:

EMAIL: (you may send one email and include all staff below)

PHONE:

  • Washington DC Office: 202-225-2271
  • Eagan Office: 651-846-2120

Step Two: Spread the Word ASAP!

H.R. 9495 is expected to be voted on in the House of Representatives as early as Wednesday morning (11/20), or Thursday (11/21) – please help us rally the nonprofit sector and our stakeholders today with these simple steps:

  • Forward this ask to five colleagues and ask them to reach out to US Rep Angie Craig and their members of Congress to urge them to vote NO.
  • Share this ask with board members and other stakeholders with direct relationships with members of Congress.

Learn More

This week, the House is expected to once again consider the H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act (H.R. 9495), which targets relief for hostages of terrorism while strengthening tools to curb terrorism financing.

The bill also has a provision where, if signed into law, would give the Treasury Secretary “nearly unfettered power to revoke the tax-exempt status of charitable nonprofits that the Secretary alleges supports terrorist activities.”

HR 9495 was also voted down on November 12, 2024. See the vote breakdown. 

Questions?

Contact MCN staff with questions and if you get any responses: