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Stephen Dinan


NextImg:‘Trump Derangement Syndrome’ returns to Congress as Democrats nearly sink anti-terror nonprofit bill

It didn’t take long for Trump Derangement Syndrome to strike Congress again, according to House Republicans who had to battle Thursday to pass a bill to strip tax-exempt status from nonprofit groups that provide material support for terrorists.

The legislation had been cruising through Congress, including clearing a House committee on a unanimous vote two months ago.

But that bipartisan consensus crumbled after President-elect Donald Trump’s victory earlier this month, as Democrats said they now fear what Mr. Trump might do with this sort of power and his so-called “enemies’ list.”



“With Trump’s election, the conditions have changed,” said Rep. Lloyd Doggett, Texas Democrat who backed the bill in committee, as he led the newfound opposition. “The dangers of granting additional power to him are far outweighed by any benefits from this bill.”

The bill cleared the House anyway on a 219-184 vote, with just 15 Democrats joining all but one Republican in favor. The Democrats’ opposition, and a dwindling legislative calendar, make the bill’s prospects dimmer in the Senate.

Republicans said the fight was a worrying sign that Democrats are reviving their legislative strategy of total resistance to Mr. Trump, despite his convincing win in this month’s elections.

Rep. Claudia Tenney, New York Republican and one of the chief sponsors of the bill, blamed Democrats’ reversal on “Trump Derangement Syndrome.”

“By the way, there’s no vaccine and no cure that we know of right now for that, which is obvious from what we’re seeing,” she said.

Nonprofit status is a taxpayer subsidy, and Republicans said it was appalling to think that U.S. money was indirectly helping support terrorist activities.

“If a nonprofit organization is funding terrorism, you lose your tax-exempt status,” said Rep. Jason Smith, Missouri Republican and chairman of the Ways and Means Committee.

He said there are real targets for the bill, including a U.S. nonprofit that funded a journalist who was working with Hamas and held a hostage in his home. That nonprofit still holds its tax-exempt status, Mr. Smith said.

The bill would give the Treasury Department and the IRS the power to strip tax-exempt status from U.S. nonprofits that are deemed to be giving material support to a terrorist organization. Under current law, designated terrorist groups cannot be tax-exempt but that doesn’t apply to those who support them.

The legislation also grants leniency to hostages held by terrorist groups, ensuring they don’t end up facing tax penalties because they were unable to file while being held.

A version of the nonprofit status bill cleared the House in April on a 382-11 vote as part of its expedited calendar reserved for uncontroversial measures. The current version of the legislation, with both the hostages and tax-exempt provisions, cleared the Ways and Means Committee on a 38-0 vote on Sept. 11.

But when Republicans tried to bring the bill to the full chamber last week it failed, with 144 Democrats opposing it, denying it the two-thirds majority needed on the expedited calendar.

This week, that opposition grew even larger, with 183 Democrats opposed.

Mr. Smith called the about-face “insanity.”

Some Democrats acknowledged Mr. Trump played a large role in their new stance.

Rep. Pramila Jayapal, Washington Democrat, voted for the legislation in April but now says she fears Mr. Trump would label environmental groups as “eco-terrorists” or try to shut down hospitals involved in “reproductive care.”

“Republicans are fixated on giving unchecked powers to the Trump administration,” she said. “Weaponizing the government is the foundation of Trump’s Project 2025.”

Rep. Don Beyer, Virginia Democrat who voted in favor of it in April and September, said Thursday he’d always had “concerns” but has now been swayed completely by the outcry of left-leaning advocacy groups.

“We have all woken up to the potential, not just because of Donald Trump but because the nonprofits that could be affected by it are aware of its impact,” he said.

Opponents include the American Civil Liberties Union, the National Association for the Advancement of Colored People, Planned Parenthood and the Council on American-Islamic Relations.

CAIR called the legislation the “nonprofit killer bill.”

“This bill dangerously weaponizes the Treasury against nonprofit organizations and houses of worship – Christian, Jewish, or Muslim – that dare to support Palestinian and Lebanese human rights or criticize Israel’s genocidal actions,” said Robert S. McCaw, CAIR’s government affairs director.

Democrats said the legislation left no guardrails in place and gives a president full authority to strip an entity of tax-exempt status.

Republicans said the bill includes protections, including allowing a nonprofit to “cure” itself by trying to claw back any money it sent to a terrorist organization and to certify, in writing, not to do so again.

• Stephen Dinan can be reached at sdinan@washingtontimes.com.