1. United States
2. Alaska
3. Letter

The proposed Stop Terror-Financing and Tax Penalties on American Hostages Act aims to provide relief to American nationals unlawfully or wrongfully detained abroad by postponing tax deadlines, reimbursing penalties and fines, and terminating tax-exempt status for organizations providing material support to terrorist groups. While well-intentioned, the bill's approach raises concerns about potential overreach and unintended consequences. This legislation grants the Secretary of the Treasury broad authority to designate organizations as "terrorist supporting" based on a low evidentiary standard of providing "material support" over a 3-year period. Such designations could be made without due process and result in the revocation of an organization's tax-exempt status, a severe penalty typically reserved for clear violations of law. Organizations could be targeted unfairly or for political reasons. Furthermore, the bill undermines judicial review by limiting jurisdiction to classified evidence cases, depriving most organizations of a meaningful opportunity to challenge incorrect designations through the normal appeals process. This conflicts with principles of government transparency and accountability. While American hostages undoubtedly deserve support, this bill's approach is problematic. A more measured strategy focused solely on assisting hostages rather than punishing third parties would be preferable. Existing laws already prohibit providing material support to terrorist groups. Therefore, I urge reconsideration of this legislation to address the valid concerns outlined above and ensure any solution properly balances all relevant interests.