WASHINGTON, D.C. – House Committee on Ways and Means Chairman Jason Smith (MO-08) and House Select Committee on China Chairman John Moolenaar (MI-02) sent a letter to Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano expressing concerns about and requesting an investigation into whether certain Chinese Communist Party (“CCP”) linked nonprofits have violated the requirements of their tax-exempt status by peddling disinformation campaigns against U.S. data center construction. Tax-exempt organizations are prohibited from operating for the private or political benefit of foreign-aligned interests. Yet, these nonprofit groups continue to funnel dollars into the United States seeking to advance Chinese interests. Many of these organizations are funded primarily by Neville Roy Singham, a Shanghai-based billionaire with direct CCP ties who has funneled hundreds of millions of dollars into U.S. advocacy groups to push destructive anti-American ideologies.
Chairman Smith issued the following statement:
“This is not an organic grassroots movement. It’s a machine with Shanghai Singham at the helm. This operation is a key piece of Beijing’s playbook to undermine America’s artificial intelligence leadership by taking advantage of the U.S. tax code. This network of tax-exempt front groups is masking foreign money behind shell companies and anonymous donor-advised funds to manipulate public discourse surrounding the technological infrastructure necessary to win the AI race. Tax-exempt status is a privilege, not a right, and it must never be used as cover for a foreign influence campaign by our adversaries. I am confident President Trump, the Treasury, and the IRS will work with Congress to hold his network accountable.”
Chairman Moolenaar issued the following statement:
“This network of CCP-linked non-profits exploits the laws of our country to promote division and anger in the public debates being held by American citizens. No one is above the law; if Singham’s organizations have violated the obligations of their tax-exempt status, then that privilege should be revoked immediately, and they should be prosecuted to the fullest extent of the law by the Department of Justice.”
Chairmen Smith and Moolenaar’s letter builds on the oversight efforts of the Ways and Means Committee and the Select Committee throughout the 119th Congress. That work includes a February 2026 Ways and Means hearing to review foreign influence throughout the tax-exempt sector, as well as Chairman Smith’s letters to The People’s Forum, BreakThrough News, and Tricontinental demanding information related to their funding sources. It also includes an April 8, 2026, joint letter by Chairmen Smith and Moolenaar to Treasury and the IRS regarding CCP-linked organizations potentially violating their tax-exempt status. Additionally, Chairman Smith participated in the Select Committee’s June 2026 hearing focused on China’s efforts to influence America’s economic activities. These efforts culminated in the issuance of subpoenas to the three organizations after they refused to comply with the Ways and Means Committee’s document requests this past July.
The disinformation campaign against American data centers is yet another unacceptable example in the CCP’s long-standing pattern of exploiting our generous tax-exempt sector and America’s legitimate public debates to incite our communities against critical technological advancement. As Chairmen Smith and Moolenaar write in their letter:
“The CCP consistently identifies political issues under public debate in our country and seeks to corrupt those debates. While the CCP wants to influence the outcome of these debates towards what it believes would weaken America relative to China, it also seeks to heighten divisions between Americans and to degrade our civic processes. These influence campaigns have targeted individuals, officials, and the American public, going back years…It is a natural extension of the CCP’s pattern for it to use its influence campaigns and networks to manipulate America’s deliberations on data centers and sow discord. It is therefore unsurprising that recent reports have revealed evidence of attempted and successful Chinese interference in U.S. data center development discussions.”
Background:
- This letter casts light upon new evidence that the CCP has extended their disinformation campaigns into data center construction fights, with OpenAI and X both detecting and banning China-linked botfarms for spreading anti-data-center propaganda.
- A Bitcoin Policy Institute report traces that campaign to the Party for Socialism and Liberation, whose leadership officials are members of Singham’s network.
- The group is tied to 21 campaigns across 14 states, producing 10 moratoria, one permanent ban, and four rejected/abandoned projects – costing nearly $24 billion in AI infrastructure investment.
- Behind those campaigns is Singham’s dark-money apparatus: $278 million funneled to far-left advocacy groups.
Read the full letter here, which was first reported by Fox News.
READ: Chairman Smith Reasserts Demands for CCP-Linked Nonprofits to Comply with Committee Oversight