A bill that claims to be about stopping terrorism threatens free speech.

The House Ways and Means Committee met a year ago, on Nov. 15, 2023, for a hearing titled “From Ivory Towers to Dark Corners: Investigating the Nexus between Antisemitism, Tax-exempt Universities, and Terror Financing.” Committee members and witnesses, including Hillel International President & CEO Adam Lehman and Anti-Defamation League CEO Jonathan Greenblatt, revisited the still-fresh heartache of the gruesome Hamas attack on Israel on Oct. 7. Rep. Jimmy Panetta, D-Carmel Valley, spoke about joining the first congressional delegation to Israel following the attack.

Part of what emerged was HR 6408, amending IRS Code to terminate the tax-exempt status of terrorist-supporting organizations. It passed 382-11 in the House in April, with bipartisan support.

It would allow the Treasury Secretary to revoke the tax-exempt status of an organization believed to be materially supporting a designated terrorist group. The nonprofit would receive a 90-day notice, have an opportunity to make its case, and could later appeal to the IRS.

Given that it is already illegal to provide material support to terrorist organizations, this all sounds like bureaucratese – so what’s the point? It would streamline things for an overburdened IRS. And as Kia Hamadanchy, senior policy counsel for the ACLU, says, “This gives the Treasury the ability to weaponize the tax code.”

Hamadanchy wrote to the Senate back in May urging them to oppose the bill; it was never taken up there.

The bill is now back in the House in a new form, HR 9495. The ACLU has been joined by dozens of groups including Freedom of the Press Foundation, Oxfam America, Planned Parenthood and the New Israel Fund urging the House to vote down the bill. “The potential for abuse is immense as the executive branch would be handed a tool it could use to curb free speech, censor nonprofit media outlets, target political opponents and punish disfavored groups across the political spectrum,” they wrote.

The updated bill returned to the House on Nov. 12, diminished in popularity; a 256-145 vote, however, did not meet the two-thirds threshold required for passage.

Now it’s back under a different procedure that requires just 50 percent to pass, with a vote expected as early as Thursday, Nov. 21.

Panetta still supports the bill, even though many Democratic colleagues have defected. He’s one of just three Democrats on the Ways and Means Committee who voted yes on Nov. 12, compared to 11 who voted no.

Rep. Zoe Lofgren, D-San Jose, also diverges; she voted yes back in April, and no in November. “While I strongly support efforts to combat terrorism financing, I have serious concerns,” Lofgren says by email. “As written, the bill risks undermining civil liberties, reducing transparency and diverting resources away from more effective counterterrorism strategies. We must be cautious not to overreach.”

That is of utmost importance now that President-elect Donald Trump is preparing for another term. He has pledged revenge against opponents. A bill like this makes that especially convenient for nonprofits.

“This is the first battle of many to try to make sure that executive power is not abused over the next four years,” Hamadanchy says. “There’s going to be a lot more of this.”

Panetta dismisses the change of heart among his colleagues as political, now that the presidential election is over. He also says there is enough evidence – of ISIS, Hamas and Al Qaeda raising funds via charitable donations – to show a need for the legislation, and sufficient protections in place.

“The incoming administration will test our political fortitude,” he says by email. “That is exactly why this policy has so many guardrails and appeals in place while clarifying existing legal authorities to protect our national security.

“I realize that politics can play into the perception of legislation. However, I try my best to operate based on the merits of the policy, rather than the politics of fear.”

Of course, politics are always at play. An analysis by Open Secrets shows Panetta’s largest donor this election was the American Israel Public Affairs Committee (AIPAC), which gave $248,467.

SARA RUBIN is the Weekly’s editor. Reach her at sara@montereycountynow.com