The main target of this is not the US. The main target is other countries. If a country is deemed guilty of Islamophobia, then it becomes ineligible for any sort of foreign aid or assistance.
That’s how they get around the First Amendment
I need to research this more. Was there even any discussion about this on the house floor? At least it was a party line vote. When I first saw this, I thought sure that my congressman (Kinzinger) would have voted for it.