U.S. Nonprofit Regulation and Election Law

House Select Committee on the Chinese Communist Party Chairman John Moolenaar and House Ways and Means Chairman Jason Smith have sent a formal letter to Treasury Secretary Scott Bessent and IRS Commissioner‑designate Frank Bisignano urging investigations into U.S. tax‑exempt Chinese diaspora 'hometown' organizations they say may be co‑opted by the Chinese Communist Party. The lawmakers warn these community groups, part of Beijing’s broader United Front strategy, may be exploiting the nonprofit system to engage in prohibited political activity and potentially interfere in U.S. elections. Their letter cites a New York Times investigation that identified at least 53 such organizations that endorsed or raised money for political candidates, including at least 19 that appeared in clear violation of federal rules. Fox also notes the prior FBI raid on the American Changle Association in New York, where an alleged illegal PRC 'secret police station' operated; one defendant, Chen Jinping, has already pleaded guilty to conspiring to act as an illegal agent of China. The push comes after a February Ways and Means hearing on malign foreign influence in the nonprofit sector, including a separate network of far‑left U.S. groups allegedly funded by tech tycoon Neville Roy Singham to advance Beijing’s interests, underscoring bipartisan anxiety that U.S. charitable law has become a soft spot for foreign influence campaigns.