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Leading figures in the House of Representatives are urging the Treasury Department and the Internal Revenue Service to launch a thorough investigation into U.S. tax-exempt nonprofits that they suspect have been infiltrated by the Chinese Communist Party (CCP) to exert influence over American elections and politics.
These organizations, known as “hometown” groups, are typically established by immigrants from the same Chinese towns or provinces. Their intended purpose is to assist new immigrants, organize social events, and help members maintain connections to their cultural roots.
However, recent activities have cast a shadow over these groups. The Federal Bureau of Investigation recently conducted raids on the offices of the American Changle Association in New York City. The association is alleged to have operated an illegal “secret police station” on behalf of China’s Ministry of Public Security. This station reportedly served to intimidate dissidents and closely monitor Chinese citizens living abroad. Two individuals were apprehended for acting as unregistered foreign agents. One of them, Chen Jinping, admitted guilt in conspiring to serve as an unauthorized agent for the Chinese government. Meanwhile, the legal proceedings for the other individual are still underway.
John Moolenaar, a Republican from Michigan, serves as the chairman of the House Select Committee on China. (Credit: Al Drago/Bloomberg via Getty Images)
In light of these developments, John Moolenaar, Chairman of the House Select Committee on the Chinese Communist Party, alongside Jason Smith, Chairman of the House Ways and Means Committee, reached out to Treasury Secretary Scott Bessent and IRS Commissioner-designate Frank Bisignano. In their letter dispatched on Tuesday, they expressed “grave concerns” over the possibility that “hometown” entities with links to the CCP are manipulating the U.S. nonprofit framework to their advantage.
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.
Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, reviews the troops during his inspection of the Chinese People’s Liberation Army PLA garrison stationed in the Macao Special Administrative Region, south China, Dec. 20, 2024. (Li Gang/Xinhua)
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.
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.”
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