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New report highlights gap permitting billions in foreign money to enter US politics

New report highlights gap permitting billions in foreign money to enter US politics

Foreign Influence in U.S. Nonprofits

A significant report was released on Tuesday ahead of a House Ways and Means Committee hearing that aims to expose foreign entities transferring substantial funds to U.S. nonprofit organizations. The hearing, titled “Foreign Influence in U.S. Nonprofits: Revealing the Threats from Beijing and Beyond,” is set to commence around 10 a.m. ET.

According to the conservative watchdog group Public Trust Americans (APT), six foreign organizations have reportedly funneled over $2.65 billion into American politics. This raises concerns about a loophole that potentially allows for what APT describes as “virtually unlimited” foreign money influencing U.S. political affairs.

While it’s illegal for foreign nationals to directly contribute to political campaigns, funding for U.S. presidential candidates can sometimes come from 501(c)(3) and (c)(4) nonprofit organizations.

The report claims that foreign donors can now support U.S.-based advocacy groups almost without restriction. The funds highlighted in the APT’s findings are troubling, but the report suggests there are likely even more foreign sources backing U.S. advocacy efforts.

The six organizations listed in APT’s report include groups from Switzerland, Denmark, and the United Kingdom. Notably, the Swiss-based Oak Foundation, founded by British billionaire Alan Parker, is identified as the largest donor, contributing around $753 million to U.S. advocacy groups.

Mr. Parker’s foundation has been known to support left-leaning environmental organizations like Greenpeace and the World Wildlife Fund. The Oak Foundation is also reported to be a significant backer of China’s Belt and Road Initiative, which critics argue serves as a geopolitical strategy under the guise of infrastructure investment.

The APT report also reveals tens of millions of dollars funneled from the Oak Foundation to the left-wing advocacy group Arabella Network, among other funds directed at various projects.

The funding landscape is quite complex. For instance, beyond Oak, the Copenhagen-based KR Foundation and the Swiss Laudes Foundation collectively contributed $55.6 million to U.S. advocacy organizations. The KR Foundation has rich ties to the VKR Group, while the Laudes Foundation is backed by the Brenninkmeyer family.

Another notable donor is the Wyss Foundation, established by Swiss billionaire Hansjörg Wyss, which reportedly donated over $673 million to U.S. advocacy groups. The APT findings indicate that the groups funded by Wyss are significantly oriented toward progressive policies, tackling issues from election law reforms to environmental advocacy.

Additionally, two other foreign organizations—the UK-based Children’s Investment Fund Foundation (CIFF) and the Quadrature Climate Foundation—have both reportedly contributed hundreds of millions to U.S. entities. CIFF, known for its aggressive stance on climate change and social justice, has given around $638.2 million, while the Quadrature Climate Foundation has awarded approximately $532.5 million.

APT has raised alarms about CIFF’s connections with entities associated with the Chinese Communist Party, calling attention to its CEO’s involvement in a coalition overseen by the party. On the other hand, the Quadrature Climate Foundation is working with influential campaign groups and scientific institutions to promote the green transition.

Overall, APT criticizes the unregulated flow of foreign funds into the U.S. political landscape, stating that foreign influence has infiltrated nearly every facet of American politics.

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