House Ways and Means Committee approves bill to reveal foreign money in nonprofits

The House Ways and Means Committee approved the Foreign Funding Transparency Act with a 23-18 vote, mandating that tax-exempt organizations report any contributions received from foreign nationals to the Internal Revenue Service. Chairman Jason Smith argued that foreign money has been used to disguise organized political activity and to spread propaganda and violence. The vote came shortly after Secretary of State Marco Rubio urged global partners to tackle what he described as far-left political terrorism.

In a committee statement, lawmakers highlighted Neville Roy Singham, a 72-year-old American residing in Shanghai, who allegedly funneled $278 million into a network of nonprofits since 2017. One outlet’s reporting linked Singham’s donations to shell 501(c)(3) entities that then support other tax-exempt groups. Rubio’s recent summit remarks emphasized the need for cross-border cooperation to disrupt such financing. The proposal now proceeds to the full House for consideration.