FIRST ON FOX: With President Donald Trump gearing up for discussions with Chinese leader Xi Jinping regarding the future of artificial intelligence, two prominent House Republicans have raised alarms about the Chinese Communist Party allegedly undermining U.S. efforts to expand AI infrastructure.
In a recent letter shared with Fox News Digital, House Ways and Means Committee Chairman Jason Smith, R-Mo., along with House Select Committee on the Chinese Communist Party Chairman John Moolenaar, R-Mich., urged Treasury Secretary Scott Bessent and IRS Chief Executive Officer Frank Bisignano to investigate potential fund flows from overseas into American charities aimed at obstructing the establishment of necessary data centers for U.S. competition against China.
They specifically highlighted the significant sums invested by American-born communist philanthropist Neville Roy Singham into various nonprofits that are now leading the charge against data center development across the U.S. Notable recipients of Singham’s funding include the Party for Socialism and Liberation and the ANSWER Coalition, both of which identify as pro-China communist organizations. Earlier this month, members of these groups took part in a protest in Chapel Hill, N.C., displaying slogans that both expressed anti-Trump sentiment and criticized developments in data centers and AI, with shouts of “SHUT IT DOWN!”
“We cannot permit an adversary, the one we regard as our top competitor in AI infrastructure, to exploit our tax code to sideline an emerging U.S. industry,” the lawmakers stressed in their Tuesday letter.
They asserted that Chinese influence operations are manipulating tax-exempt groups and nonprofit networks, using them to instigate opposition against U.S. data centers essential to the AI sector.
The lawmakers called for an investigation into whether organizations affiliated with this network have acted for the “private or political benefit of foreign-aligned interests” and whether these entities are utilizing donor-advised funds to obscure the origins of foreign-directed finances influencing American advocacy.
A Fox News Digital investigation determined that Singham transferred approximately $285 million since 2017 to several U.S. nonprofits, including his wife’s organization, CodePink, using shell corporations and a philanthropy fund managed by Goldman Sachs, which reportedly terminated Singham’s account in 2024.
The nonprofits have retained their tax-deductible status while engaging in activities promoting communist regimes, organizing street protests, and inciting anti-American sentiments. They have denied involvement in any foreign influence operations, and Singham has not responded to requests for commentary.
Smith remarked that China’s support of Singham is fueling opposition to American AI infrastructure by backing U.S. organizations leading anti-data-center protests. “This is the Chinese helping to throw gasoline on the fire,” he told Fox News Digital, stating that the American public should be aware that this movement is not merely grassroots.
Smith acknowledged that there are valid concerns among Americans regarding data centers, specifically about their impact on electricity costs and water usage. However, he emphasized that foreign-backed entities shouldn’t be allowed to take advantage of these apprehensions to hinder U.S. technological advancement.
According to Smith, “The Chinese aim to stall and slow down the U.S. advancement in AI because they want to win the AI war.” He emphasized that “Tax exempt is a privilege. It is not a right,” urging the necessity to ensure that tax dollars are not used to stoke discord and unrest within the country.
Smith also called for increased transparency regarding cash flows among organizations connected to Singham, indicating that the overarching issue may reach beyond tax codes to include potential violations of the Foreign Agents Registration Act. “Transparency is paramount,” he asserted.
Moolenaar remarked that organizations posing as grassroots groups are actually promoting the agenda of the Chinese Communist Party within the U.S. “Groups that claim to be grassroots are more like astroturf — quite artificial — funded by entities collaborating with the Chinese Communist Party,” he explained to Fox News Digital.
He expressed concern that these organizations manipulate public perceptions and opposition to American investments like data centers, aiming to sway the American populace against such technologies, thereby enabling China to dominate this sector.
Moolenaar cited grassroots organizations, community groups, propaganda, and even online bots as part of this manipulation. “We cannot have foreign entities—countries opposed to U.S. interests—using our system against us to manipulate the American people,” he stressed.
He emphasized the need for transparency relating to these organizations’ funding and tax-exempt status, urging confirmation of whether their political activities breach federal regulations. “When you see them vocally opposing U.S. interests and realize that groups like CodePink are heavily funded by this network, it raises profound concerns,” Moolenaar stated.
The chairman commented on how China exploits the open nature of American society for its influence efforts. “The Chinese Communist Party aims to divide Americans, manipulating and disseminating propaganda,” he noted. “They do not enjoy the freedoms we do and strive to leverage those freedoms against us.”
While China serves as both a major trading partner and a strategic rival, Moolenaar insisted that the U.S. must avoid becoming reliant on Beijing. “They pose a significant threat,” he added. “They are indeed our trading partner, and we must maintain a relationship, yet we should not allow ourselves to be manipulated or grow dependent, nor do we want to be under their control.”
The lawmakers pointed out that a collaborative effort among congressional committees, including the Ways and Means Committee and the House Select Committee on the CCP, is investigating how these influence operations allegedly exploit America’s tax-exempt sector to further “sow discord and undermine our democracy.”
Smith and Moolenaar noted that the CCP consistently identifies contentious political issues in the U.S. and seeks to influence these debates. They seek to create rifts among Americans and deteriorate civic processes.
The lawmakers specifically referenced opposition campaigns against data centers, seen as vital to the nation’s AI infrastructure. A report from OpenAI identified two clusters of ChatGPT accounts likely linked to China that were involved in covert influence operations regarding U.S. discussions on AI and technology policies. One campaign, referred to as “Data Center Bandwagon,” produced social media posts suggesting that data center constructions were hiking electricity costs for families. OpenAI stated that while there was no evidence of significant success beyond their activities, it illustrated how foreign entities can exploit local concerns to amplify distrust.
The lawmakers also highlighted a report from the Bitcoin Policy Institute, which noticed 21 campaigns led by the Party for Socialism and Liberation against data centers across 14 states. These campaigns resulted in 10 data-center moratoriums, a permanent ban, and four abandoned or canceled projects, amounting to almost $23.68 billion in potential investment.
The Party for Socialism and Liberation and the ANSWER Coalition are part of the network funded by Singham, and a Fox News Digital investigation uncovered connections between significant anti-data-center activism from these organizations and others within Singham’s circle, such as BreakThrough News, the People’s Forum, Tricontinental: Institute for Social Research, and CodePink.
“Our tax code must not serve as protection for foreign funding performing disinformation campaigns against American AI infrastructure,” Smith and Moolenaar stated. “This is another alarming instance of how harmful foreign actors are channeling funds into the U.S. to advance CCP objectives.”
The lawmakers reiterated their commitment to guarding against “Trojan horses” that promote harmful foreign interests, requesting the Treasury and IRS to assess whether tax-exempt organizations tied to this network have breached their status requirements.
This includes evaluating if organizations operating under Section 501(c)(3) are acting for the “private or political benefit of foreign-aligned interests” rather than legitimate charitable purposes. They urged scrutiny of whether donor-advised funds and intermediaries have been manipulated to obscure the origins of overseas funds directed at American advocacy.
Their letter is a continuation of the previous investigations by the Ways and Means Committee and the House Select Committee on the CCP regarding the tax-exempt sector and its connection to Singham’s network.
While the lawmakers agree that opposition to data centers is a legitimate public discourse, they underscore the importance of ascertaining whether foreign adversaries are attempting to influence these conversations through nonprofits, social media campaigns, or secret funding methods.
“The American people should be informed about which adversarial actors are attempting to disrupt these decision-making processes,” they concluded.
