1. United States
2. Texas
3. Letter

The proposed Stop Terror-Financing and Tax Penalties on American Hostages Act seeks to provide relief to Americans unlawfully detained or held hostage abroad by postponing tax deadlines, reimbursing paid late fees, and terminating the tax-exempt status of organizations supporting terrorism. While well-intentioned, this legislation raises concerns about potential overreach and unintended consequences. The bill grants the Secretary of the Treasury broad authority to designate organizations as "terrorist supporting organizations" based on a low threshold of providing "material support or resources" to certain groups, even if unintentional or de minimis. This risks ensnaring lawful charitable and humanitarian organizations engaged in legitimate activities. Moreover, the expedited rescission process lacks sufficient due process protections. Furthermore, the automatic tax-exempt revocation for designated organizations, coupled with limited judicial review, could undermine constitutional rights and stifle civil society. A more balanced approach weighing national security interests against preserving robust civic engagement and legal safeguards is needed. Rather than pursuing this flawed bill, I urge exploring targeted solutions that address the plight of unlawful detainees through existing frameworks like the Hostage Recovery Fusion Cell and Office of Hostage Affairs while upholding democratic principles of transparency, due process, and freedom of association. Comprehensive reform centering human rights should guide any counterterrorism financing efforts.