Leading members of the House are urging both the Treasury Department and the IRS to scrutinize U.S. tax-exempt organizations that may be manipulated by the Chinese Communist Party (CCP) to meddle in American political affairs, including elections.
These organizations, often referred to as “hometown” associations, are established by immigrants from specific regions in China. Their original purpose is to assist new arrivals, coordinate cultural festivities, and help members maintain their social and cultural heritage.
Recently, the FBI conducted investigations and searches at the American Changle Association’s premises in New York City. They claimed it operated an unlawful “secret police station” linked to China’s Ministry of Public Security. This facility allegedly served to intimidate dissidents and surveil individuals overseas. Chen Jinping, residing in New York, admitted to “conspiring to act as an illegal agent of the government of the People’s Republic of China.” Meanwhile, legal proceedings continue for another individual involved.
John Moolenaar, a Republican representing Michigan, chairs the House Select Committee on China. (Al Drago/Bloomberg via Getty Images)
The chairmen of the House Select Committee on the Chinese Communist Party, John Moolenaar, and the House Ways and Means Committee, Jason Smith, dispatched a letter on Tuesday to Treasury Secretary Scott Bessent and IRS Commissioner-designate Frank Bisignano. The correspondence expressed “grave concerns” regarding “hometown” organizations with CCP affiliations potentially misusing the U.S. nonprofit framework.
The lawmakers cautioned that these groups are components of the CCP’s “United Front” strategy. An earlier congressional report characterized this strategy as “a unique blend of engagement, influence activities, and intelligence operations” aimed at influencing political landscapes and promoting Beijing’s global interests. They emphasized that some of these associations are masquerading as initiatives by Chinese expatriates to foster “overseas friendship.”
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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