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Top House lawmakers have urged the Treasury Department and IRS to investigate US tax-exempt nonprofits formed by Chinese immigrants, alleging involvement in election interference by the Chinese Communist Party. These 'hometown' organizations, intended for cultural and social support, are said to have been co-opted for political activities.
Substrate placeholder — needs reviewTop House lawmakers have sent a letter to Treasury Secretary Scott Bessent and IRS Commissioner-designate Frank Bisignano, requesting an investigation into US tax-exempt nonprofits known as 'hometown' organizations. These groups are formed by immigrants from the same towns or provinces in China to assist new arrivals, organize events, and maintain cultural ties.
The lawmakers allege that some of these organizations have been co-opted by the Chinese Communist Party for political influence and election interference.
The letter, dated Tuesday, was sent by House Select Committee on the Chinese Communist Party Chairman John Moolenaar and House Ways and Means Committee Chairman Jason Smith. It raises concerns that these entities are part of the CCP's 'United Front' strategy, described in a prior congressional memo as a combination of engagement, influence activities, and intelligence operations to advance Beijing's interests abroad.
The lawmakers noted that some groups operate under the guise of fostering 'overseas friendship' among Chinese expatriates.
associations are community-based groups originally established to connect Chinese diaspora communities in the US.
Federal tax law under section 501(c)(3) prohibits these nonprofits from participating in campaigns for or against political candidates. The letter cites a New York Times investigation from last year, which reported that at least 53 such organizations endorsed or raised money for political candidates, with at least 19 in clear violation of federal restrictions.
In recent years, the FBI has investigated activities linked to these groups.
For instance, agents raided the offices of the American Changle Association in New York City, alleging it operated an illegal 'secret police station' run by China's Ministry of Public Security. The station was reportedly used to harass dissidents and monitor Chinese citizens abroad. Two individuals were arrested in connection with the case for acting as unregistered foreign agents.
Chen Jinping, of New York, New York, pleaded guilty to conspiring to act as an illegal agent of the government of the People's Republic of China. The case of the other individual remains in the courts.
The letter follows a February hearing by the House Ways and Means Committee on malign foreign influence in the US nonprofit sector.
The hearing examined organizations linked to Neville Roy Singham, a US-born tech tycoon living in Shanghai, who is associated with promoting CCP interests. A Fox News Digital investigation reported that Singham directed $278 million to a network of groups involved in anti-US protests, support for China, and backing for protests related to the Islamic Republic of Iran, a strategic partner of China and a source of its oil imports.
Singham and the funded groups did not respond to requests for comment.
The lawmakers' concerns extend to a broader scope of influence operations, including both diaspora groups and other networks. The request seeks to determine if these organizations are exploiting the US nonprofit system for prohibited political activities that could manipulate democratic institutions.
Next steps may involve the Treasury and IRS reviewing the tax-exempt status of the implicated groups.
Affected parties include the nonprofits, their members in the Chinese diaspora, and US political processes. The investigation could lead to enforcement actions if violations are confirmed.
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