The Ways and Means Committee has taken significant steps to address concerns over foreign influence in the U.S. tax-exempt sector. Through a series of legislative measures, the Committee aims to increase transparency, prevent foreign interference in American politics, and protect the rights of faith-based organizations.
These efforts come in response to extensive investigations that revealed networks of U.S.-based organizations funded by foreign nationals or operating under the direction of foreign governments. The legislation seeks to close loopholes that have allowed foreign entities to manipulate public discourse and influence political outcomes.
Legislative Measures to Enhance Transparency
The Committee has approved several key bills designed to bring more transparency to the tax-exempt sector. The Foreign Funding Transparency Act (H.R. 9772) requires tax-exempt organizations to disclose foreign donations, including those from countries of concern like China, North Korea, Russia, and Iran. This measure aims to ensure that foreign nationals do not indirectly influence U.S. politics through donations to tax-exempt organizations.
The Stopping Foreign Influence in Elections Act of 2026 (H.R. 9771) introduces penalties for large tax-exempt organizations that receive contributions from foreign nationals and then donate to political committees or other tax-exempt organizations engaged in political activities. This bill seeks to prevent the misuse of tax-exempt status for political purposes.
Another critical piece of legislation is the Fiscal Sponsorship Transparency Act (H.R. 9721) which requires tax-exempt organizations to disclose information about fiscally sponsored projects. This includes details such as the names of those involved, dates, amounts of funds made available, and activities related to the funds provided. The bill also imposes excise taxes on organizations acting as conduits for non-tax-exempt third parties.
Protecting Religious Freedoms
The Committee also approved the Fair Treatment of Religious Organizations Act of 2026 (H.R. 9722) which aims to protect the right to freedom of religion for faith-based organizations. This legislation ensures that determinations of religious purpose are made without regard to an organization’s beliefs or practices concerning marriage, sexuality, or gender identity, even if they are inconsistent with current public policy.
This measure is a response to past instances where the IRS has weaponized its revocation authority against conservative organizations. By safeguarding religious freedoms, the Committee seeks to prevent future administrations from declaring traditional religious values to be against public policy.
Investigations and Subpoenas
In addition to legislative measures, the Ways and Means Committee has issued subpoenas to several tax-exempt organizations connected to Neville Roy Singham, a tech mogul living in Shanghai with ties to the Chinese Communist Party (CCP). These organizations, including BreakThrough News, Tricontinental, and The People’s Forum, have been accused of stonewalling the Committee’s investigation into foreign-linked funding and the U.S. tax-exempt sector.
The subpoenas require these organizations to produce documents and communications related to foreign-linked funding, fiscal sponsorship arrangements, financial relationships, and communications with Neville Roy Singham or other foreign principals. The Committee’s investigation aims to uncover how the CCP has exploited America’s tax laws and charitable sector to advance its influence operations within the United States.
Chairman Jason Smith emphasized the importance of these subpoenas in exposing the networks that exploit U.S. tax laws and the urgent need for legislation to close those loopholes. The Committee’s efforts are part of a broader push to ensure that the tax-exempt sector operates with transparency and accountability, free from foreign interference.
