WASHINGTON, D.C. – Today, Ways and Means Committee Chairman Jason Smith (MO-08) delivered the following remarks during a hearing on foreign influence in America’s tax-exempt sector.
As prepared for delivery.
“Today’s hearing continues our investigations into the money trails behind tax-exempt organizations failing to operate within their stated tax-exempt purpose and sowing chaos, fueling antisemitism, and interfering in elections across America.
“We have held hearings exposing many of the main players who use their tax-exempt status in concerning and problematic ways. We’ve passed legislation out of this Committee with strong support from Republicans and Democrats to hold bad actors accountable. We referred eleven tax-exempt groups to the Biden and Trump IRS for investigation and possible revocation of their tax-exempt status.
“What our investigations have found should disturb every American.
“Certain tax-exempt organizations funded by foreign donors are exploiting their lucrative U.S. tax benefits to incite violence and unrest in our communities and destabilize our political process, all to the benefit of the foreign flags their donors’ fly.
“Several, including Alliance for Global Justice which I called on the IRS to revoke the tax-exempt status of, are suspected of having ties to terrorist groups and using those close connections to funnel resources to support terrorism. Groups like Samidoun – a sham charity affiliated with the PFLP and designated as a terrorist organization by the U.S. Treasury.
“Other tax-exempt organizations are masking the flow of foreign money by allowing separate entities to utilize their tax-exempt status in order to hold riots across the United States featuring intimidation and violence.
“Many of these groups, like American Muslims for Palestine, were contributors to the harassment and violence toward Jewish students that plagued elite universities.
“Several other tax-exempt groups intentionally direct millions of dollars in foreign money to sway our elections. One foreign national, a Swiss billionaire, gave over $200 million dollars to a 501(c)(3) foundation and related 501(c)(4) to help ‘Democrats…win the White House and control of Congress.’
“Many of these tax-exempt groups also have documented ties to hostile foreign governments, like the Chinese Communist Party.
“The People’s Forum, an American tax-exempt group who I demanded documents from in September, hosts events and courses pushing Communist Party propaganda, incites violent protests and riots, including disruptive occupations of college campuses, and publicly supported Hamas’ October 7th terrorist attack against Israel.
“And it’s no wonder that the People’s Forum echoes Communist Party propaganda. One of their largest donors is a wealthy former U.S. tech executive living in Shanghai who is cozy with the Chinese Communist Party. Neville Roy Singham and his wife, a co-founder of CodePink, donated over $20 million to People’s Forum through shell companies and donor-advised funds to hide the original source of the money.
“The Committee has worked tirelessly to unravel the Singham-CCP network.
“Just last night, I sent letters to Tricontinental and BreakThrough News, two organizations that are part of his regime of CCP-linked non-profits operating here in the U.S.
“Each one of these groups has the same thing in common. Foreign actors fueling disruption and illegal activity in America, using a dark web of tax-exempt groups.
“And all this disruption, chaos, and hate is subsidized by American taxpayers.
“Nothing about today’s hearing should be partisan. Republicans and Democrats should work together to stop foreign actors from interfering with our politics and public discourse through non-profits. The people who want America weak, divided, and torn apart would love nothing more than a partisan battle. This is not politics, it’s national security.
“The manipulation and abuse of tax-exempt status by foreign nationals is unacceptable. Tax-exempt status is a privilege, not a right.
“To the tax-exempt groups who set out on a mission to provide benefits to communities, we are encouraged by the good work you are doing. To the tax-exempt groups hiding in darkness and stirring up unrest in this country, know that this Committee is coming for you.
“We will not hesitate to use every tool in our toolbox to root out the foreign influence lurking in America’s tax-exempt sector.
“I want to thank our expert witnesses for coming to testify today about how foreign individuals, organizations, and even nations are taking advantage of our tax-exempt sector to destabilize the United States through our own tax code.”
