House Members Call for Investigation into Nonprofits Linked to China
Top officials in the House of Representatives are urging the Treasury Department and the Internal Revenue Service to look into U.S. nonprofit organizations that have been reportedly used by the Chinese Communist Party (CCP) to influence elections and political matters in the United States.
These nonprofits, often called “hometown” organizations, are set up by immigrants from the same region in China. They aim to assist new immigrants, hold cultural events, and help maintain social connections within their communities.
In a troubling turn of events, the FBI recently launched a search and raid at the American Changle Association in New York City. This group is accused of operating as an illegal “secret police station” directed by China’s Ministry of Public Security. The station reportedly harassed dissenters and monitored foreign nationals, resulting in the arrest of two individuals for serving as unregistered foreign agents. One resident, Chen Jinping, has pleaded guilty to conspiracy related to China’s illegal actions.
John Moolener, who chairs the House Select Committee on the CCP, along with Jason Smith from the House Ways and Means Committee, sent a letter to Treasury Secretary Scott Bessent and IRS Commissioner nominee Frank Bisignano expressing serious concerns. They believe local organizations tied to the CCP are exploiting the U.S. nonprofit system.
The lawmakers highlighted how these groups seem to be part of the CCP’s “united front” strategy—a method of engagement, influence, and espionage designed to impact the political landscape and further Beijing’s interests abroad. Some organizations are disguised as groups fostering “foreign friendships” among Chinese expatriates.
A New York Times investigation cited in the letter indicated that at least 53 organizations might be violating fundraising and political support regulations, with 19 of them in “clear violation” of federal laws.
The letter comes on the heels of a February hearing held by the Ways and Means Committee, which focused on foreign influences in the U.S. nonprofit sector. During this hearing, scrutiny fell on individuals like Neville Roy Singham, a tech entrepreneur known for promoting the CCP’s interests. A Fox News Digital report revealed that Singham had funneled $278 million into various organizations that incited anti-American protests and supported the Iranian regime.
While Moolener and Smith’s latest correspondence aims at organizations in the Chinese diaspora, the broad spectrum of interests, from far-left factions to community groups, illustrates China’s intricate influence operations.
In their letter, lawmakers warned that the People’s Republic of China is utilizing united front organizations and intermediaries within the U.S., many of which enjoy tax-exempt status, to manipulate democratic institutions. They raised alarms about “homeland associations,” suggesting these groups, initially formed to unite the Chinese diaspora, have been compromised by the CCP.
These lawmakers contend that involvement in political activities by 501(c)(3) organizations is against federal tax law, which prohibits such nonprofits from participating in campaigns for or against candidates.
Moreover, they pointed out instances where individuals and groups reportedly faced pressure from Chinese officials to prevent politically dissenting candidates from connecting with their communities. The correspondence also indicates that networks associated with the United Front could serve as a facade for more sinister operations linked to various Chinese security agencies.
Lawmakers are awaiting a briefing by April 22 on actions the IRS is taking to combat these perceived threats to the country’s political integrity.
