WASHINGTON, D.C. – Today, Chairman Jason Smith (MO-08) of the House Committee on Ways and Means and Chairman John Moolenaar (MI-02) of the House Select Committee on China called on Treasury Secretary Scott Bessent and Internal Revenue Service (IRS) CEO Frank Bisignano to examine tax-exempt U.S.-based organizations with ties to the Chinese Communist Party (CCP) and part of China’s United Front influence operations in the United States.
“The People’s Republic of China (PRC) is utilizing United Front organizations, proxies, and intermediaries within the United States—many granted tax-exempt status under section 501(c) of the Internal Revenue Code—to engage in political activity that manipulates our democratic institutions and supports the interests of the CCP,” write Chairmen Smith and Moolenaar in a letter to Secretary Bessent and IRS CEO Bisignano.
“Despite such clear prohibitions on political campaign intervention by organizations and leaders of 501(c)(3) groups, an investigation conducted by The New York Times identified at least 53 of these organizations that have endorsed or raised money for political candidates, likely in violation of the rules against political campaign intervention. Moreover, at least 19 of those registered charities were in clear violation on the ban…
“The cases include a particularly egregious event involving a candidate for Congress in New York. In addition to facing threats from Chinese government agents that sought to sabotage the candidate’s campaign and impugn his character for his involvement in the Tiananmen student protests, community organizations that provide a venue for local candidates were reportedly threatened, coerced, or co-opted by the PRC consulate to deny the candidate a stage to engage the community. Local leaders who participated in meetings with foreign leaders that the CCP opposes were censored by hometown associations. Tellingly, leaders of hometown associations have explicitly endorsed candidates for office in clear violation of rules against political campaign intervention,” they add.
As the Select Committee’s 2023 United Front 101 memo details, the United Front works as “a unique blend of engagement, influence activities, and intelligence operations” used by the CCP to “shape its political environment, including to influence other countries’ policy toward the PRC and to gain access to advanced foreign technology.”
Recently, the Committee on Ways and Means held a hearing investigating how foreign actors are taking advantage of the U.S. tax-exempt sector to sow division, chaos, and hate in communities across the country while corrupting America’s political discourse. The day before the Committee’s hearing, Chairman Smith sent letters to Tricontinental and BreakThrough News, two organizations that are part of a network of non-profits linked to the CCP and operating in the United States. The network is funded by Neville Roy Singham, a former U.S. technology mogul living in Shanghai with close ties to the CCP.
Read the chairmen’s full letter here.