During a Ways & Means Committee hearing on Tuesday, U.S. Rep. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, criticized foreign billionaires and entities for exploiting American tax-exempt and nonprofit laws. He raised concerns about foreign involvement in funding protests across the United States, citing recent demonstrations in Minneapolis as an example.
Kelly pointed to The People’s Forum, a 501(c)(3) organization that received more than $20 million from Neville Roy Singham, a U.S. tech entrepreneur residing in Shanghai who has connections to the Chinese Communist Party. According to Kelly, The People’s Forum has supported activities resulting in arrests and has organized anti-ICE protests both in Minneapolis and nationwide.
He noted that tax-exempt nonprofits now account for 15% of the nation’s GDP, include over 1.8 million organizations, and control assets exceeding $8 trillion.
“The American people are starting to look at foreign influence like this and say, ‘what’s the return on my investment as a taxpayer?'” Rep. Kelly said during the hearing. “From a national security concern, we should be incredibly concerned. Somebody is picking up the tab, and it’s becoming clear foreign groups are cheating American taxpayers.”
The Committee has requested investigations by both current and former IRS administrations into whether nearly a dozen nonprofits with alleged ties to foreign terrorist groups or domestic unrest should lose their tax-exempt status. Organizations under scrutiny include Americans for Justice in Palestine Education Foundation, American Muslims for Palestine, WESPAC Foundation, Alliance for Global Justice, and The People’s Forum.
Kelly and other Republican members of Ways & Means have also called for increased transparency and oversight regarding foreign money moving through U.S.-based nonprofits to protect tax exemptions.
Additionally, Kelly highlighted how some foreign actors use networks of multiple tax-exempt organizations to obscure financial flows and avoid IRS rules while seeking to influence U.S. elections. He cited Hansjorg Wyss—a Swiss billionaire—who used his foundation structures to donate $208 million aimed at supporting Democratic electoral victories.
Mike Kelly represents Pennsylvania’s 16th district in Congress; he began serving after replacing Kathy Dahlkemper in 2011 (https://kelly.house.gov/about). Born in Pittsburgh in 1948 and currently living in Butler at age 74, he earned his bachelor’s degree from the University of Notre Dame in 1970.
The full hearing is available online.
