Washington, DC - A measure known as a "non-profit killer" has been removed from a huge tax bill proposed by the U.S. Congress, according to a bill released online by the House of Representatives.
The rule no longer appears on the “a big and beautiful bill” supported by President Donald Trump, which will grant the executive branch tax exempt status to nonprofits it believes supports “terrorism.”
Advocates warn that legislative efforts - the failure to pass the Independence Act last year could abuse groups that the government disagrees, especially non-governmental organizations (NGOs) that support Palestinian rights.
Israel shows little signs that it is relaxing after more than 19 months in the Gaza War. Intensification of violence has been seen in the besieged Palestinian territory, which killed hundreds of people.
The reason for the NGO regulations disappearance is unclear, and experts warn that the bill may reappear later this week before the House votes are expected.
The office of Republican House Speaker Mike Johnson did not immediately respond to Al Jazeera’s request for comment.
In the House-majority razor, Republicans need every vote to pass the tax bill, which Trump puts on the agenda.
Kia Hamadanchy, senior policy adviser for the American Civil Liberties Union, said the section may have been removed to avoid putting the bill that must be passed at risk, especially because House members, a nonpartisan office that does not have to oversee the process, may have rejected violations of the rules.
Hamadanchy told Al Jazeera: "That might be the ic they don't want, considering it's even impossible to go through."
"I can't tell you why this is for sure. What I can tell you is that if we come back later this week or in the future, we will continue to be on our guard."
For weeks, Trump has called on Congress to pass the bill, which expanded his 2017 tax cuts, a key component of his economic plan.
However, the proposal faces opposition from the Conservative Budget Eagles, which they believe does not cut enough spending and will increase U.S. $36.2 trillion in debt. Therefore, Republicans may have unnecessary problems that may lead to legislation passing.
Rights groups have been opposing “non-profit killers”, claiming that they violate rights to freedom of speech and due process.
The proposal would grant the Minister of State Power unilaterally declare "terrorist support" of NGOs and make them ineligible for tax exemption.
It also said that if “disclosure of such descriptions is inconsistent with national security or law enforcement rights”, the government does not have to reveal the reasons behind the designation.
Under current regulations, organizations that are certified as nonprofits will violate their federal income tax. This status also deducts such tax contributions deducted to donors.
While the revoked measures will allow targeted NGOs to challenge the Secretary of State’s ruling in court, even temporarily, they may lose tax-exempt status due to nonprofits, especially smaller organizations.
Hamadach said the accused of supporting terrorism could also prompt banks to close their group’s accounts.
“Then you have legal fees to fight that designation because even if you might win in court it will take some time to get there, which will do a lot of damage to your organization in the process,” he said.
“That’s the point because they want to relax their speech.”
Hamadanchy noted that existing laws have provided significant support for designated "terrorist" groups to commit criminal offences with severe fines.
The legislation push is in line with the Trump administration’s crackdown on Palestinian rights supporters, especially on university campuses.
Secretary of State Marco Rubio revoked student visas from several Palestinian advocates who have been charged with criminal offenses over allegations of “support for terrorism.”
Some advocacy groups portray "nonprofit killers" as part of a wider push toward muzzle sound.
"The bill aims to disagree with dissent, especially with the silence of Muslims, Palestinian and civil rights groups who oppose injustice and genocide," the U.S. Council on Islamic Relations said in a statement last week.
“It threatens all nonprofits engaged in advocacy, education of the public or challenging government policies.”
The obvious setback in nonprofit provisions came after House leaders canceled votes on the bill to limit Israel’s boycott of Israel, which was restricted by right-wing lawmakers on the grounds of free speech.
Lara Friedman, chairman of the Middle East Peace Foundation, said it would be interesting to see how Republican leaders will deal with such a firm pro-Israel measure as the “non-profit killer.”
"On the one hand, they may make this an opportunity to embarrass Democrats, whose opposition will be constituted against Israel or to achieve terrorism and anti-Semitism - on the other hand, they have to worry about Friedman's principled opposition in his position."