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Malliotakis’ Bill Cracking Down on Foreign Interference in U.S. Elections Passes Out of Ways & Means Committee


Congresswoman Nicole Malliotakis (NY-11) applauded on May 15 the passage of her legislation, the No Foreign Election Interference Act, out of the House Committee on Ways and Means with bipartisan support in a vote of 39-1,setting it up for consideration by the entire House. The legislation would prohibit tax-exempt organizations that receive funding from foreign nationals from contributing to political committees.

The Federal Election Campaign Act (FECA) prohibits foreign nationals from donating money to U.S. campaigns, however, there are no laws or regulations preventing foreign nationals from influencing U.S. elections by directing funds to 501(c)(3) and 501(c)(4) organizations or other tax-exempt organizations. Under Malliotakis’ legislation, tax-exempt entities would be barred from contributing to a political committee for eight years from the date it received a contribution or gift from a foreign national. The first two disqualified contributions would be punished by a fine totaling 200% of the donation amount. A third contribution would result in the automatic revocation of tax-exempt status for the organization making the donation.

“From paid agitators who disrupt official proceedings on Capitol Hill, to groups who have been fueling radical antisemitic protests that resemble the violent riots of 2020, to Swiss billionaires who’ve donated hundreds of millions to various left-wing causes, it’s clear our adversaries will find any loophole possible to wreak havoc on and influence our elections,” Malliotakis said. “In order to protect the sanctity of our electoral system, tax-exempt organizations that accept contributions from foreign nationals should not be allowed to financially contribute to political committees, and if they do so, they should have their tax-exempt status and benefits revoked. I’m pleased to see the Committee advance my commonsense legislation today so we can prevent our adversaries from exploiting our democratic processes and safeguard our political system.”

“When it comes to our elections, the American people – not foreign wealthy donors – should decide the future direction of our country,” said Ways and Means Committee Chairman Jason Smith (MO-08). “Unfortunately, while foreign nationals are prohibited from donating directly to U.S. elections, there is little to stop these foreign donations from flowing to U.S. tax-exempt organizations and then into Super PACs or other political committees meant to influence the outcome of American elections. Rep. Malliotakis’s bill, the No Foreign Election Interference Act, provides penalties for tax-exempt organizations that donate to political committees after receiving a contribution from a foreign national and revokes the tax-exempt status for organizations who repeatedly flout the law.”


Last month, Ways and Means Committee Republicans wrote to Internal Revenue Service (IRS) Commissioner Daniel Werfel raising concerns about foreign adversaries exercising influence over American-based tax-exempt organizations after recent reports shed light several U.S.-based tax-exempt organizations, including the Energy Foundation, The People’s Forum, and the Berger Action Fund that have been funding far-left advocacy groups, promoting Chinese Communist Party (CCP) propaganda, and fueling antisemitic protests to influence America’s political landscape.

  • The Energy Foundation claims to be headquartered in California, however, tax forms show the group refers to itself as “Energy Foundation China,” and reports suggest the majority of its operations are conducted in China with a staff that has substantial connections to the CCP. The group contributed $3.8 million to promote “green” energy policies that would increase our country’s dependence on Chinese minerals and materials.
  • Roy Singham, a self -described socialist who’s based in Shanghai, owns and operates a complex network of America-based nonprofits and has funded the The People’s Forum which has been at the center of a number of antisemitic incidents since the October 7 attacks in Israel. Singham has provided hundreds of millions of dollars to groups that mix progressive advocacy with CCP talking points, and its reported that he works closely “with the Chinese government media machine and is financing its propaganda world-wide.” To date, it remains unclear how Singham, his entities and the U.S.-based individuals he’s associated with are being funded.
  • The Berger Action Fund, a nonprofit funded by Swiss billionaire Hansjörg Wyss, recently funneled $60 million to 13 left-wing advocacy groups focused on issues ranging from voter engagement to environmental initiatives.
  • Black Lives Matter, the organization behind 2020 anti-police riots that crippled New York City and destroyed businesses and NYPD property, has a global foundation that receives foreign money with an affiliated PAC that were heavily involved in races that tilted the Senate to Democrat control.

In December 2023, the Ways and Means Subcommittee on Oversight heard testimony on the total lack of transparency surrounding how money from foreign nationals can influence the American political system when funneled through 501(c)(3) and 501(c)(4) organizations. That hearing followed a November 2023 hearing by the Ways and Means Committee on the spread of antisemitism on the campuses of tax-exempt universities as well as financial links between so-called charitable organizations operating within the United States and terrorist organizations.