As prepared for delivery.
“Thank you Oversight Committee Chairman Schweikert for convening today’s hearing. I also want to wish our colleague Representative Pascrell, the ranking member of this subcommittee, a speedy recovery. We are thinking of him and look forward to having him back soon.
“I apologize to the witnesses that not one of the Democrats have showed up today. This has been two committee hearings in the last 11 days that not one Democrat decided to come to work. I think it’s pretty unacceptable, especially on a topic that is so important. Members of the Ways and Means Committee can waive on to subcommittee hearings. And to think not one Democrat, feels like it’s important enough to sit on that side to look at 501(c)(3) tax-exempt status, and how money is flowing to terrorist organizations and to the Chinese is appalling and unacceptable. If you’re paid to be a member of Congress show up to work.
“The committee began its investigation into entities organized under Section 501 of our tax code because of concerns about organizations using their tax-exempt status for harmful purposes. Over the course of our investigation, it has become clear that the explosion of antisemitic activity on college campuses has been supported and encouraged by bad actors who in many cases have used tax-exempt organizations for those purposes.
“The violence and hatred directed at Jewish Americans and in support of terrorist organizations like Hamas are not some organic uprising. There are well-orchestrated efforts by anti-American and anti-Jewish organizations within the United States that provide financial and logistical support to those who harass and threaten Jewish students.
“Perhaps the most notable example is the Students for Justice in Palestine – an anti-Israel organization with chapters on over 200 college campuses. SJP receives significant support from groups like American Muslims for Palestine. AMP – despite their alleged ties to terrorism – openly works in coordination with its “fiscal sponsor”, called AJP Educational Foundation, Inc., to provide funding, talking points, and other material support. This organizational structure is being investigated by Virginia’s Attorney General, and just this week a court ruled that a case against them could move forward.
“Another example of this type of relationship is the Tides Foundation – a left-leaning, tax-exempt organization – that is sponsoring several entities with ties to antisemitic activity occurring here in the U.S. In fact, just yesterday I sent a letter to the U.S. Chamber of Commerce Foundation demanding they explain why they are partnering with the Tides Foundation given the fact that that organization is funneling resources to groups that are inciting violent protests and harassment of Jewish students on America’s college campuses.
“There are also foreign actors who funnel resources into colleges where we are seeing an unusually large amount of antisemitic activity. Since the mid-1980s, Middle East nations have donated over $6.5 billion dollars – including $2.7 billion in gifts from the nation of Qatar from 2014 to 2019 alone – to American universities. Much of this funding has gone unreported by these schools despite their obligations under the Higher Education Act. At the same time, the institutions that accepted funding from Middle East donors have experienced, on average, 300 percent more antisemitic incidents than those that did not.
“Not to be outdone, the Chinese Communist Party also has ties to the tax-exempt sector in the U.S., including a 501(c)(3) organization called The People’s Forum which called on activists to re-create the protests of the summer of 2020 before rioters occupied a building at Columbia University.
“This evidence points to a concerted effort on the part of individuals operating tax-exempt organizations to abuse the trust and generosity of U.S. taxpayers and funnel resources towards antisemitism, violent protests, and potentially even support for terrorist organizations.
“In one effort to halt this type of abuse of our tax code, I’ve made a formal request to the IRS demanding they revoke the tax-exempt status of an organization named the ‘People Media Group.’ This organization funds a publication by the name of ‘The Palestine Chronicle’ that employed a so-called journalist who was caught actually imprisoning Israeli hostages in Gaza. The editor-in-chief of that publication also appears to have ties to Iranian-backed publications as well. Along with Education and the Workforce Committee Chairwoman Foxx and Oversight and Accountability Committee Chairman Comer, we’ve also called on the Department of Justice to investigate these groups for providing material support for terrorism.
“American taxpayers should not be fooled into supporting antisemitic activities on college campuses or, for that matter, actual terrorist organizations. The fact that entities openly hostile to America and our allies are receiving tax-exempt benefits – either directly or indirectly – demands further investigation.
“I appreciate the efforts of this committee to gather the facts to ensure we protect the integrity of our tax code.”