NW Tennessee News

The House of Representatives has approved the Stop Terror-Financing and Tax Penalties on American Hostages Act, also known as H.R. 9495. This bill, introduced by Representatives David Kustoff (R-TN) and Claudia Tenney (R-NY), passed with a vote of 219-184.

The legislation aims to revoke the tax-exempt status of U.S. nonprofits that have provided material support to designated terrorist groups. It also seeks to waive certain IRS late fees and penalties for Americans unlawfully held abroad.

Congressman Kustoff expressed his support for the bill, stating: "I rise today in strong support of H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act. I am proud this is a bipartisan bill that will make much needed improvements to our tax code."

He acknowledged his colleagues, including Representatives Claudia Tenney from New York, Brad Schneider from Illinois, Dina Titus from Nevada, and Chairman Jason Smith for their contributions and leadership regarding this legislation.

Kustoff highlighted the current situation where American citizens are being held captive by terrorist groups and foreign adversaries. He emphasized the responsibility to bring these Americans home and address what he termed an "unacceptable flaw in the federal tax code."

"This legislation will revoke the tax-exempt status of any organization found to have provided material support or resources to a designated terrorist group within the past three years," Kustoff noted.

The issue gained attention following a reported incident involving a journalist linked to The Palestine Chronicle—a U.S.-based 501(c)(3) tax-exempt organization—who was discovered holding Israeli hostages in Gaza.

Kustoff remarked on prior legislative efforts with similar language under H.R. 6408, which passed overwhelmingly earlier in April with a vote of 382-11.

"For all these reasons, I strongly urge my colleagues to support this important legislation today," he concluded.

H.R. 9495 was initially introduced on September 9, 2024, by Reps. Kustoff, Tenney, Schneider (D-IL), and Titus (D-NV). It received unanimous approval from the House Ways and Means Committee on September 11, 2024.