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.
This legislation would allow the Secretary of the Treasury to designate section 501(c) nonprofits as “terrorist supporting organizations” at the Secretary’s discretion, without requiring the Secretary to share their full evidence or reasoning with accused nonprofits.
Furthermore, the legislation runs counter to constitutional due process protections by placing the burden of proof on the accused organization and providing only 90 days for organizations to demonstrate their innocence before revoking their tax-exempt status.
Take Action
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 flip 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)
- Hayden Schutt, Legislative Correspondent: hayden.schutt@mail.house.gov
- Nick Coe, Chief of Staff: nick.coe@mail.house.gov
- Skylar Borchardt, Deputy Chief of Staff and Legislative Director: skylar.borchardt@mail.house.gov
- Suzie Cavalier, Senior Legislative Assistant: suzie.cavalier@mail.house.gov
PHONE:
- Washington DC Office: 202-225-2271
- Eagan Office: 651-846-2120
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.
- Joint Statement in Opposition from Council on Foundations, Independent Sector, National Council of Nonprofits, and United Philanthropy Forum
- ACLU Sign on Letter
- House narrowly rejects bill to give US new power to vet nonprofits, NYT
Questions?
Contact MCN staff with questions and if you get any responses:
- Marie Ellis, Public Policy Director, mellis@minnesotanonprofits.org
- Bailey Sutter, Public Policy Manager, bsutter@minnesotanonprofits.org