politics
Senator Introduces Bill to Revoke Tax-Exempt Status for Nonprofits Linked to Political Violence
Sen. Ted Cruz introduced legislation that would expand liability for 501(c)(3) organizations whose sponsored groups violate the law. The measure comes as the Justice Department examines funding networks connected to Neville Roy Singham.
abcnews.go.comAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
Sen. Ted Cruz introduced the Stop Proxy Organizations Nurturing Subversive Operations and Riots Act, or SPONSOR Act, in March. The bill would amend the Internal Revenue Code to hold 501(c)(3) nonprofits criminally and civilly liable for violations committed by groups they fund or sponsor.
Cruz said the legislation aims to give law enforcement tools to track funding and close loopholes used through fiscal sponsorships. The measure is co-sponsored by Sen. Ted Budd and has a House companion introduced by Rep. Nathaniel Moran.
Digital reported that the Justice Department opened a grand jury probe into the financial operations of nonprofits linked to Singham. The network has received $278 million from Singham since 2017, routed in part through a donor-advised fund. The nonprofits have organized demonstrations including anti-ICE and anti-Israel protests, according to the same reporting.
Singham, a U.S. citizen now living in Shanghai, has not responded to repeated requests for comment.
Related Statements Sen.
Jim Banks said Singham maintains ties to the Chinese Communist Party and called him a traitor to the country. Banks cited Singham's funding of groups that confront lawmakers and promote violence. Cruz stated that Democrat billionaires have used tax-exempt entities to advance foreign-aligned interests. He said the Justice Department investigation into Singham's network is appropriate.
