Tax - exempt status is a privilege Not a right

standard-democrat.com · Feb 17, 2026 · Collected from GDELT

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For years now, Americans have seen the devastating impacts from the creeping influence of the Chinese Communist Party (CCP). Individuals and companies connected to the CCP have stolen American business’ intellectual property, bought up American farmland, and flooded our streets with deadly fentanyl. The CCP has actively worked to sow chaos and division in the United States, but now, we are working to expose a new avenue in their campaign: our non-profit sector.This week, I held a hearing in the Ways and Means Committee, which I chair, where witnesses confirmed what our investigation has been steadily uncovering — the United States tax-code is being weaponized against us in ways that threaten both national security and the legitimacy of the tax-exempt sector. What we have uncovered in our investigation is foreign actors — including individuals associated with or connected to the CCP — are exploiting America’s nonprofit system to influence our politics and encourage chaos and illegal activity inside our own country.The findings should alarm every American. Billions of dollars in foreign-linked funding have moved through tax-exempt organizations in recent years, including hundreds of millions from foreign billionaires into politically-active American entities. To make matters worse, these funds are laundered through donor funds and shell organizations designed to hide the true source from regulators and the public.Our investigation also revealed how nonprofit networks tied to individuals aligned with the CCP have funneled tens of millions of dollars into U.S.-based groups that promote illegal activity and fuel division in our society. For example, Neville Roy Singham — a former U.S. tech executive now living in Shanghai with close ties to the CCP — has directed more than $100 million through a web of nonprofits operating inside the United States. Some of these groups, such as The People’s Forum, have amplified anti-American, foreign-aligned narratives on social media, and pushed messaging that mirrors hostile government propaganda.These efforts are not spontaneous grassroots uprisings. They are part of a coordinated system in which money, messaging, and mobilization are carefully aligned to generate division and instability. This is not some earnest movement. It’s a machine being subsidized by taxpayer dollars.Perhaps most alarming is a loophole that allows foreign nationals to donate to certain tax-exempt organizations that can then engage in political activity without fully disclosing the origin of those funds. While federal law prohibits direct foreign donations to political campaigns, this backdoor pathway undermines that protection. When foreign money can be used to influence elections, it can be used to influence decisions that undermine our national interests and erode public trust.It is clear the status quo is unacceptable. Tax-exempt status is a privilege, not a right. It exists to support legitimate charitable and educational work that strengthens our communities, not to serve as cover for foreign propaganda, election interference, or activities that undermine our national interest.This issue should not be partisan, and I am committed to restoring accountability to our nation’s tax-exempt sector. Protecting the integrity of our tax-exempt system is not about politics — it is about defending the sovereignty of the United States against actors like the Chinese Communist Party and ensuring that our tax code works for the American people, not for hostile foreign interests.