1. United States
2. Texas
3. Letter

The proposed Stop Terror-Financing and Tax Penalties on American Hostages Act seeks to provide relief for Americans unlawfully detained or held hostage abroad by postponing tax deadlines, waiving penalties and interest, and establishing procedures for refunds of amounts already paid. While assisting these individuals is a worthy goal, the provision terminating tax-exempt status for organizations designated as providing material support to terrorist groups raises significant concerns. Revoking an organization's tax-exempt status based solely on an administrative designation, without due process protections like judicial review, is constitutionally questionable. Such unilateral action could inadvertently impact legitimate non-profit groups engaged in humanitarian or peacebuilding efforts in conflict zones. The vague "material support" standard provides little guidance and risks overly broad application. Rather than this blunt approach, narrowly-tailored measures specifically targeting verifiable terrorist financing activities would better uphold constitutional principles while still combating this threat. Any sanctions on organizations should involve robust due process, align with human rights norms, and avoid unduly restricting civil society operations. I urge reconsideration of this problematic provision to ensure the legislation stays focused on its core purpose of supporting American hostages.