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Top House lawmakers are pushing Treasury and the IRS to investigate tax-exempt U.S. nonprofits allegedly co-opted by the Chinese Communist Party to interfere in U.S. elections and politics.
Nonprofit organizations are called “local” organizations, formed by immigrants from the same cities or provinces in China to welcome new immigrants, organize parades, and help members maintain social and cultural ties.
In recent years, the FBI investigated and raided the offices of the American Changle Association in New York City, alleging that it housed an illegal “secret police station” run by China's Ministry of Public Security. Two people were arrested for acting as unregistered foreign agents, and the “police station” was used to harass dissidents and surveil citizens abroad. One man, Chen Jinping, of New York, New York, pleaded guilty to “conspiring to act as an unlawful agent of the government of the People's Republic of China.” The other man's case is moving forward in court.
John Moolenaar, R-Mich., is chairman of the House Select Committee on China. (Al Drago/Bloomberg via Getty Images)
Chinese Communist Party House Select Committee Chairman John Moolenaar and House Ways and Means Committee Chairman Jason Smith sent a letter Tuesday to Treasury Secretary Scott Bessent and IRS Commissioner-designate Frank Bisignano raising “serious concerns” that “local” entities linked to the CCP are exploiting the US nonprofit system.
Lawmakers warned that the groups are part of a CCP “United Front” strategy, which an earlier congressional memo described as “a unique combination of engagement, influence activities and intelligence operations” used to shape political environments and advance Beijing's interests abroad. They noted that some of these groups are created under the guise of Chinese expatriates creating “overseas friendship” in the world.
Citing a New York Times investigation published last year, the letter claims that at least 53 organizations “endorsed or raised money for political candidates, likely in violation of the rules,” and at least 19 in “clear violation” of federal restrictions.
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Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, reviews troops during his inspection of the Chinese People's Liberation Army PLA garrison stationed in south China's Macao Special Administrative Region, Dec. 20, 2024. (Li Gang/Xinhua)
The letter follows a hearing in February by the Ways and Means Committee that examined malign foreign influence in the US nonprofit sector, including organizations linked to a technology magnate, US-born, Shanghai-based Neville Roy Singham, who promotes the strategic interests of the CCP and China.
A Fox News Digital investigation tracked the $278 million Singham invested in a network of groups that are fueling anti-American protests in the United States, supporting China and now backing the Islamic Republic of Iran, a strategic partner of China and a major source of its oil imports, in nationwide protests today. Singham and the groups he has funded did not respond to a request for comment.
Moolenaar and Smith's new letter took aim at another set of organizations formed in the Chinese diaspora, but the broad scope of their concerns – from far-left groups to diaspora community groups – speaks to a complex campaign of influence operations by China.
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In the latest letter, the lawmakers warned that the PRC is “using United Front organizations, representatives, and intermediaries within the United States (many of them with tax-exempt status under section 501(c)) to engage in political activities that manipulate our democratic institutions.”
The letter highlights concerns about so-called “hometown associations,” community groups originally formed to connect Chinese diaspora communities but which lawmakers say have been “co-opted” by the CCP and incorporated into its broader network of influence.
Lawmakers allege that those organizations have engaged in political activities prohibited by federal tax law, which prohibits 501(c)(3) groups from participating in campaigns for or against candidates.
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Lawmakers also pointed to cases in which people and organizations were allegedly pressured or coerced by Chinese officials or affiliated groups, including efforts to prevent political candidates critical of Beijing from engaging with local communities. They further warned that networks linked to China's United Front may serve as “cover for other nefarious operations” linked to Chinese security agencies, including the Ministry of Public Security and the Ministry of State Security.
Lawmakers requested a briefing by April 22 on what steps the IRS is taking “to address these threats to our political institutions.”
Leo Briceño and Hanna Brennan contributed to this report.
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