WASHINGTON, D.C. – Congressman Jason Smith (MO-08) formally introduced the No Abortion Bonds Act, which prohibits the use of federal tax-exempt bonds to finance the construction of abortion clinics.
“For 42 years it has been law in this country that no federal funds can be used for abortion services,” said Congressman Jason Smith. “Yet a loophole in the tax code remains, allowing abortion clinics to be built using federally subsidized tax-free bonds. The No Abortion Bonds Act would remedy this and take another step in the right direction to defend innocent life and protect vulnerable unborn children.”
Congressman Smith’s No Abortion Bonds Act will remove the tax-exempt status of any bond that goes to an abortion provider or abortion clinic. Federal tax-exempt bonds cost the federal government billions in lost revenue, meaning they are subsidized by taxpayers.
“Missouri Right to Life supports the No Abortions Bond Act as it will deny ‘tax credit bond status’ to any bonds used to provide a facility owned by an abortion provider. Our federal tax dollars should not be used to support the killing of unborn children,” said Susan Klein, Executive Director of Missouri Right to Life. “This bill is another attempt by our pro-life legislators to reduce and eventually eliminate the hundreds of millions of dollars in government funds making its way into the pockets of abortion providers each year. Missouri Right to Life applauds Congressman Jason Smith and all of the Members of Congress who support this bill.”
State and local governments are allowed to finance construction of schools, roads, and hospitals with special bonds exempt from federal taxes. While the 1976 Hyde Amendment prohibits the use of taxpayer funds for abortion or abortion-related services, millions of dollars in tax-free municipal bonds have been issued to abortion clinics and even used to renovate Planned Parenthood’s national headquarters in New York City.