Sen. Ted Cruz Proposes Bill Targeting Nonprofits Linked to Political Violence
In a recent development, Senator Ted Cruz (R-Texas) is advocating for legislation that would revoke the tax-exempt status of individuals and organizations that contribute to nonprofits associated with political violence. This push comes amid an investigation by the Justice Department into the finances of the far-left financier Neville Roy Singham.
Acting Attorney General Todd Blanche has sanctioned an investigation led by U.S. Attorney Jay Clayton of the Southern District of New York, focusing on the financial operations of a network of nonprofits funded by Singham.
“For years, I’ve pointed out that Democratic billionaires are financially backing leftist political violence to promote anti-American and foreign interests through tax-exempt groups,” Cruz stated. “The DOJ is right to look into Neville Roy Singham’s funding network, which has been crucial for these operations.”
Proposed Legislation Aims to Hold Nonprofits Responsible
Cruz introduced the “Stop Proxies That Foster Subversive Activities and Riots Act” in March. This legislation intends to amend the Internal Revenue Code, extending the legal liability of 501(c)(3) organizations to those they support or sponsor. This could make these nonprofits liable for any legal violations committed by the organizations they are affiliated with.
Critics argue that Singham’s nonprofit network uses financial support to sidestep law enforcement and tax authorities. Cruz indicated the goal of his Sponsored Act is to empower law enforcement to track funding, shut loopholes, and ensure accountability.
Singham, a tech magnate now residing in Shanghai, has reportedly funneled $278 million into a wide array of nonprofits since 2017. These organizations often mobilize participants for various protests across the U.S., including anti-ICE and anti-Israel demonstrations.
Funding and Influence Questions Surround Singham
Despite multiple requests for comments from Fox News Digital, Singham has not responded. His financial contributions, funneled through the Goldman Sachs Donor Advised Philanthropy Fund, comprised $22.44 million to People’s Forum, a New York-based hub of far-left activism.
The People’s Forum is linked to several proxy organizations, notably the Venceremos Brigades, which collaborates with the Cuban government to facilitate American activist visits to Cuba for political solidarity efforts. Donations to the Venceremos Brigade are categorized as a project supported by People’s Forum.
Additionally, the “ICE Out of New York” group, which is known for opposing ICE operations, also hosts events in collaboration with People’s Forum.
Cruz oversees the Senate Judiciary Subcommittee that regulates grants to the DOJ. He stressed, “Current loopholes in the Internal Revenue Code permit extremist groups to use tax-exempt funds for violent, anti-American activities without accountability. This violence isn’t spontaneous; it’s financed by well-funded organizations exploiting these loopholes.”
The bill has support from Senator Ted Budd (R-North Carolina), while a House version has been introduced by Representative Nathaniel Moran (R-Texas). Moran emphasized Congress’ responsibility to uphold the integrity of the nonprofit sector against abuses by radical groups.
Many Republicans, including Senator Jim Banks (R-Ind.), have criticized Singham’s perceived pro-Chinese Communist Party influence in the U.S. Banks referred to him as a “traitor” and expressed concerns regarding the threat posed by Singham’s nonprofit network.
Saliently, Fox News Digital has traced funding from Singham to CodePink, an organization co-founded by his wife, Jodi Evans. Banks noted, “Neville Singham is a traitor to our country. His alliances lie with the Chinese Communist Party, even as he identifies as an American citizen. Unraveling his expansive philanthropy reveals not just ideological financing but also support for violent movements.”
