GOP Drops Measure to Boost Treasury’s Power Over Tax-Exempts

The GOP’s massive tax bill advanced late Sunday without a provision that would give the Treasury Department secretary heightened power over nonprofit organizations.

The vote in the House Budget Committee sets the bill up for passage as soon as May 22. The bill no longer includes a provision, decried by the tax-exempt community, that would allow the Treasury secretary to gain the power to suspend the tax-exempt status of terrorist-supporting organizations.

Nonprofit groups worried that the provision would hand too much power to Treasury to define “terrorist-supporting organizations.” National Council of Nonprofits CEO Diane Yentel said in a statement last ...