Staten Island Reporter

Congresswoman Nicole Malliotakis, a member of the House Committee on Ways and Means, has introduced the No Foreign Election Interference Act. This legislation seeks to prohibit tax-exempt organizations that receive funding from foreign nationals from contributing to political committees for eight years from the date that entity received a contribution or gift from a foreign national.

While the Federal Election Campaign Act (FECA) already prohibits foreign nationals from donating money to U.S. campaigns, there are currently no laws or regulations preventing these individuals from influencing U.S. elections by directing funds to 501(c)(3) and 501(c)(4) organizations or other tax-exempt entities. Malliotakis' legislation aims to close this loophole.

Under the proposed law, tax-exempt entities would be barred from contributing to a political committee eight years from the date they received a contribution or gift from a foreign national. The first two disqualified contributions would incur 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 political committee donation.

"In order to protect the sanctity of our elections, tax-exempt organizations that accept contributions from foreign nationals should not be allowed to financially contribute to political committees," Malliotakis said. She added that such organizations who do not adhere to rules protecting democracy deserve to have their tax-exempt status revoked.

Ways and Means Committee Chairman Jason Smith (MO-08) echoed Malliotakis's sentiments, stating: "When it comes to our elections, the American people – not foreign wealthy donors – should decide the future direction of our country." He also highlighted how Rep. Malliotakis’s bill provides penalties for tax-exempt organizations that donate to political committees after receiving a contribution from a foreign national and revokes their tax-exempt status if they repeatedly flout the law.

The move comes after Republicans on the Ways and Means Committee raised concerns about foreign adversaries influencing American-based tax-exempt organizations. These concerns were sparked by recent reports about several U.S.-based tax-exempt organizations, including the Energy Foundation, The People's Forum, and the Berger Action Fund. These entities 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, which claims to be headquartered in California but operates mainly in China with substantial connections to the CCP, has contributed $3.8 million to promote "green" energy policies that would increase U.S. dependence on Chinese minerals and materials.

Roy Singham, a self-described socialist based in Shanghai, owns and operates a complex network of America-based nonprofits including The People's Forum. This organization has been at the center of numerous antisemitic incidents since the October 7 attacks in Israel.

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.

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.