Federal Tax and Nonprofit Enforcement

All 26 Republicans on the House Ways and Means Committee, led by Chairman Jason Smith, have sent a formal letter to Treasury Secretary and acting IRS Commissioner Scott Bessent and IRS CEO Frank Bisignano pressing them to crack down on tax‑exempt organizations they say are abusing the tax code, promoting “anti‑American and/or pro‑terrorist ideals,” and committing large‑scale fraud. The lawmakers cite Minnesota’s Feeding Our Future scandal—where officials stole an estimated $250 million in child‑nutrition funds and some money is now suspected of reaching al‑Shabaab—as evidence that current safeguards on nonprofits and federal social‑welfare dollars have failed. The letter demands the IRS abandon what Republicans call the Biden administration’s “laissez‑faire approach” to the sector and move to revoke tax‑exempt status and expand audits where groups appear to be fronting for fraud or funneling money abroad. Smith pairs the push with praise for President Trump’s Minnesota enforcement surge and a new Treasury fraud probe, framing this as part of a broader effort to overhaul how Washington polices charities and grantees. If Treasury and IRS follow through, the move could reshape oversight for thousands of U.S. nonprofits that touch federal money, from social‑services providers to politically contentious advocacy groups.