WASHINGTON (Michigan News Source) – In a heated stance on Capitol Hill, Congresswoman Rashida Tlaib (D-Mich.) has positioned herself against H.R. 9495, the “Stop Terror-Financing and Tax Penalties on American Hostages Act.”

The bill seeks to strip tax-exempt status from nonprofits allegedly involved in terror funding. Tlaib, the only Palestinian-American in Congress, and other progressives argue the bill grants unchecked power to the Treasury to label any organization as “terrorist-supporting” without the need for transparent evidence, posing what they see as a potential clampdown on freedom of speech.

Tlaib vs. Trump: a battle over nonprofits.

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Tlaib has voiced sharp opposition to H.R. 9495, claiming it opens the door for the incoming Trump administration to target nonprofits under the guise of combating terrorism. Critics argue that this bill could unfairly impact organizations that engage in legitimate humanitarian and social justice efforts.

Tlaib contends that the legislation is a dangerous step toward authoritarianism, giving the Treasury unprecedented control without requiring concrete proof or due process.

‘Dictatorial powers’ or essential safeguards?

Supporters of the bill argue that stronger measures are necessary to prevent foreign funding from fueling extremist groups within U.S. borders. However, Tlaib and others warn that it could result in a witch hunt, stifling organizations advocating for marginalized communities, environmental protections, and reproductive rights.

Fellow representatives, including Summer Lee (D-Pa.) and Ilhan Omar (D-Minn.), have joined Tlaib in criticizing H.R. 9495, arguing that it threatens free speech by potentially silencing voices critical of the administration.

Tlaib, a critic of U.S. support for Israel, thinks that this legislation is an effort that will be used to crack down even more on protests against the war in Gaza saying, “Dissent is a fundamental part of democracy.”

ACLU and non-profits chime in.

A coalition of non-profits, led by the ACLU, send a letter to Congress in September telling them that “giving the executive branch new power to silence dissent and dismantle civil society organizations isn’t just bad policy – it’s bad for democracy.”

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Tlaib’s opposition to the bill has amplified tensions over civil rights, with some warning that organizations like American Muslims for Palestine and ColorOfChange could be unfairly targeted.

The bill was narrowly blocked by Democrats on Tuesday and did not reach the two-thirds majority in the House; however, it’s expected to face an easier path to approval once Republicans take control of both chambers in January.

Another bill that Tlaib opposes is the “No Immigration Benefits for Hamas Terrorists Act.” This legislation aims to explicitly deny immigration benefits to individuals associated with Hamas or Palestinian Islamic Jihad, rendering them inadmissible to the United States. It also seeks to bar immigrants involved in the October 7th attack on Israel. The bill passed overwhelmingly in the House, but Rep. Tlaib was one of two “Squad” members to vote against it.