Top House lawmakers are pressing Treasury and the IRS to investigate U.S. tax-exempt nonprofits allegedly co-opted by the Chinese Communist Party to interfere in American elections and politics.
The nonprofits are called “hometown” organizations, formed by immigrants from the same towns 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 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, with the “police station” used to harass dissidents and monitor citizens abroad. One man, Chen Jinping, of New York, New York, pled guilty to “conspiring to act as an illegal agent of the government of the People’s Republic of China.” The other man’s case is navigating through the courts.
House Select Committee on the Chinese Communist Party 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 “grave concerns” that “hometown” entities linked to the CCP are exploiting the U.S. nonprofit system.
The lawmakers warned that the groups are part of a CCP “United Front” strategy, which a prior congressional memo described as “a unique blend 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 states that at least 53 organizations “endorsed or raised money for political candidates, likely in violation of the rules,” with at least 19 in “clear violation” of federal restrictions.
The letter follows a February hearing by the Ways and Means Committee examining malign foreign influence in the U.S. nonprofit sector, including organizations linked to a tech tycoon, Neville Roy Singham, born in the United States and living in Shanghai, promoting the strategic interests of the CCP and the China.
A Fox News Digital investigation tracked $278 million that Singham poured into a network of groups that fuel anti-American protests in the United States, support China and now back 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 didn’t respond to a request for comment.
The new letter from Moolenaar and Smith targeted another set of organizations formed in the Chinese diaspora but the wide scope of their concers — from the far-left groups to the diaspora community groups — speaks to a complex influence operations campaign by China.
In the latest letter, the lawmakers warned the People’s Republic of China is “utilizing United Front organizations, proxies and intermediaries within the United States—many granted tax-exempt status under section 501(c)—to engage in political activity that manipulates our democratic institutions.”
The letter highlights concerns about so-called “hometown associations,” community-based groups originally formed to connect Chinese diaspora communities but which lawmakers say have been “co-opted” by the CCP and incorporated into its broader influence network.
Lawmakers allege those organizations have engaged in political activity prohibited under federal tax law, which bars 501(c)(3) groups from participating in campaigns for or against candidates.
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The lawmakers also pointed to cases in which individuals and organizations were allegedly pressured or coerced by Chinese officials or affiliated groups, including efforts to block political candidates critical of Beijing from engaging with local communities.They further warned that networks linked to China’s United Front can serve as “cover for other nefarious operations” tied to Chinese security agencies, including the Ministry of Public Security and 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 Briceno and Hanna Brennan contributed to this report.
