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Nonprofit Leaders Brace for Possible Targeting by the Trump Administration After Tax Measure Advances in Congress

  • A House tax-writing committee recently added a provision to the One Big Beautiful Bill Act allowing the Treasury secretary to suspend nonprofits' tax-exempt status.
  • This provision follows President Trump’s January 21 executive order directing agencies to identify organizations deemed 'terrorist supporting' for civil investigations.
  • Opponents argue the measure lacks due-process safeguards and fear it targets groups opposing Trump's agenda, while proponents say it prevents taxpayer subsidies to terrorism.
  • More than 200 groups, including the American Library Association and Sierra Club, signed a statement urging removal of the provision, and analysis finds the revenue effect negligible.
  • Nonprofit leaders are preparing for possible audits, consulting lawyers amid uncertainty over the provision’s impact and broader administration efforts to target perceived adversaries.
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Must Read Alaska broke the news in on Saturday, May 17, 2025.
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