Staten Island Reporter

Today, Congresswoman Nicole Malliotakis (NY-11) celebrated the passage of her legislation, the No Foreign Election Interference Act, through the House Committee on Ways and Means. The bill, which received bipartisan support in a 39-1 vote, is now set for consideration by the entire House. Malliotakis' legislation aims to prevent tax-exempt organizations that receive funding from foreign nationals from contributing to political committees.

The Federal Election Campaign Act (FECA) currently bars foreign nationals from donating money to U.S. campaigns. However, there are 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. Under Malliotakis' legislation, tax-exempt entities would be prohibited from contributing to a political committee for 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 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."

Ways and Means Committee Chairman Jason Smith (MO-08) echoed Malliotakis' sentiments: "When it comes to our elections, the American people – not foreign wealthy donors – should decide the future direction of our country. 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."

Last month, Ways and Means Committee Republicans wrote to Internal Revenue Service (IRS) Commissioner Daniel Werfel expressing concerns about foreign adversaries influencing American-based tax-exempt organizations. Recent reports have shed light on 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.

In December 2023, the Ways and Means Subcommittee on Oversight heard testimony on the 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.