The House is set to vote this week on legislation that would make it easier for the federal government to remove the tax-exempt statuses of nonprofits that provide support to terrorist groups. But the legislation has become politically controversial amid accusations from progressive groups and Democratic lawmakers that it would enable arbitrary crackdowns by the incoming Trump administration.

The initial version of the bill, which was sponsored by Reps. David Kustoff (R-TN) and Brad Schneider (D-IL), passed the House overwhelmingly in April, by a vote of 382-11. In the intervening seven months it has become the subject of controversy and has not moved forward in the Senate.

A new version of the bill was brought up for a House vote last week under procedures requiring a two-thirds margin of support, and failed with a 256-145 vote. The legislation will be brought up again for a simple-majority vote this week and will likely pass.

The bill would streamline the procedures for revoking the nonprofit status of charities accused of providing financial or material support to U.S.-designated terrorist organizations. Under current law, the issue must be adjudicated at trial, and the law has rarely been invoked. Under the new legislation, the secretary of the Treasury would be able to make such determinations unilaterally, potentially without publicly releasing underlying evidence.

Targeted charities would have 90 days to file a court challenge before losing their tax exemptions.

The legislation comes in response to growing concerns — especially after Oct. 7 — that U.S.-based anti-Israel charities and nonprofits are providing support and potentially funding for Hamas and other terrorist groups in Gaza and the Middle East. A staffer for the Palestine Chronicle, a U.S.-registered nonprofit, was also found to have been holding hostages in his home in Gaza.

Schneider, speaking in the past about the legislation, described it as “commonsense legislation [that] is an important step toward cutting off financing for Hamas, Hezbollah and other terrorist groups from maligned non-profit organizations, such as the Holy Land Foundation, who have already been prosecuted for funneling money to Hamas and others.”

“Any organization providing material support to terrorist organizations must be held accountable and denied the privilege of tax-exempt status,” Schneider continued.

The Holy Land Foundation was a now-shuttered nonprofit group that the U.S. designated as a terrorist organization, accusing it of providing financial support to Hamas. Analysts have highlighted that some of the group’s top leadership are now senior members of other pro-Palestinian charities and alleged that the Holy Land Foundation has functionally reformed under new names.

Fifty-two Democrats voted for the bill last week, mostly moderates and pro-Israel lawmakers. The Anti-Defamation League, AIPAC and the Republican Jewish Coalition are supporting the bill.

An ADL spokesperson highlighted the protections for due process included in the legislation.

“A crucial pillar in the global fight against terrorism is dismantling the financial networks of terrorist organizations. It should go without saying that any organization providing material support to a foreign terrorist organization does not deserve the privilege of tax-exempt status,” the spokesperson said. “We welcome the bipartisan leadership of Reps. Tenney, Schneider, Kustoff and Titus in support of this measure and continue to urge the House of Representatives to pass the bill with strong due process measures in place.”

AIPAC spokesperson Marshall Wittmann said opponents were misrepresenting the bill.

“We support this bipartisan legislation which provides important tools to combat terrorism and organizations which financially assist it,” Wittmann said. “Unfortunately, this legislation has been badly mischaracterized by its opponents as it is carefully targeted at organizations which actually support U.S. designated foreign terrorist organizations.”

The ACLU has been leading the charge, along with other progressive groups, against the legislation. Libertarian groups like the Cato Institute are also opposing it, though just one Republican, Rep. Thomas Massie (R-KY), voted against it.

The bill “would grant Donald Trump and his handpicked secretary of the Treasury power to investigate and effectively shut down any tax-exempt organization — including news outlets, universities, and civil society groups — by stripping them of tax-exempt status based on an unilateral accusation of wrongdoing,” the ACLU alleged in a statement, describing the legislation as a “dangerous new tool [Trump] could use to stifle free speech, target political opponents, and punish disfavored groups.”

Some left-leaning Jewish groups are opposing the legislation, including Bend the Arc and the New Israel Fund, as is the Religious Action Center of Reform Judaism.

The RAC said in a letter to lawmakers that the bill “endows the Treasury Secretary with overly broad power that threatens constitutional rights” and “opens the door to potential abuse and politicization of what should be impartial policy decisions.”

The RAC argued that current procedures are sufficient and “less susceptible to political interference or the chilling effect on speech and activity.”

Sen. Chris Murphy (D-CT) has also been a vocal opponent of the bill.

“A frequent tool of dictators is to label political opposition groups as ‘terrorist groups’ and shut them down,” Murphy said on X. “This bill — up for a vote this week — would give Trump the power to do just that. It’s disastrous. And apparently there are House Democrats CONSIDERING VOTING FOR IT!”

The new version of the bill that the House is voting on this week is combined with noncontroversial legislation that would give U.S. hostages held abroad relief from tax penalties when they are released from captivity.