House Ways and Means Committee Chairman Jason Smith said the committee’s two-year investigation into alleged abuses of nonprofit tax-exempt status is yielding results, with the Treasury Department and IRS taking action against organizations accused of facilitating foreign influence and terrorism financing.

The probe centers on whether U.S. nonprofits are being used to channel funds for political activity, fraud, or support for foreign entities, raising questions about oversight and national security.

Smith’s committee began its investigation in September 2024, targeting several organizations for alleged ties to terrorist groups and foreign governments. The committee referred seven nonprofits to the IRS for possible revocation of tax-exempt status, including the Alliance for Global Justice, which was cited for its financial support of Samidoun, an entity designated by the Treasury Department for affiliation with the Popular Front for the Liberation of Palestine.

Islamic Relief USA (IRUSA), one of the organizations under scrutiny, recently filed a lawsuit in the Southern District of New York to sever ties with its overseas affiliate, Islamic Relief Worldwide (IRW), following multiple committee referrals to the IRS. According to the committee and official statements, IRUSA was the largest contributor to IRW in 2021 and 2022, providing £54.3 million and £67 million respectively, which accounted for a significant share of IRW’s total income. IRW has faced longstanding allegations of connections to terrorist groups, including Hamas.

Smith stated, “I am committed to ensuring those who enjoy generous benefits under our tax code are not funding, affiliated with, or participating in activities that violate their 501(c)(3) status.” He called IRUSA’s move to sever financial ties a “significant response” to congressional oversight.

The committee has also pressed the IRS over the "Feeding Our Future" scandal, a Minnesota-based nonprofit fraud case involving hundreds of millions of dollars in pandemic-era food aid, with some funds allegedly reaching the al-Shabaab terrorist network in Somalia. Treasury Secretary Scott Bessent opened an investigation into these allegations, but no charges have been brought so far.

Foreign Influence and Activist Networks

Smith’s investigation has highlighted the activities of Neville Roy Singham, a U.S. citizen based in Shanghai, who is the primary sponsor of a network of activist organizations including The People’s Forum, BreakThrough News, and Tricontinental: Institute for Social Research. Congressional investigators have documented extensive financial and leadership ties between these groups and Singham, as well as his connections to the Chinese Communist Party. IRS filings show The People’s Forum received over $20 million from Singham and his spouse, CodePink co-founder Jodie Evans, between 2017 and 2022.

Smith has accused these organizations of using their tax-exempt status to promote communist propaganda and support disruptive protests, including anti-ICE demonstrations and recent campaigns against data centers and artificial intelligence development in the U.S. He alleges these efforts are part of a broader attempt by Beijing to undermine American interests, particularly in technology and higher education.

"It should alarm every single American that these tax-exempt entities have been able to be abused to allow foreign intervention."

— Jason Smith, House Ways and Means Committee Chairman

Despite congressional pressure, groups such as The People’s Forum, CodePink, the ANSWER Coalition, and the Party for Socialism and Liberation have retained their tax-exempt status and have not been prosecuted under the Foreign Agents Registration Act, according to previous reporting by Just the News.

Treasury and Justice Department Responses

Treasury Secretary Bessent has publicly committed to expanding the department’s efforts to identify nonprofits abusing their status for illicit financial activity, describing it as an extension of existing counterterrorism tools. In July remarks, Bessent said the department’s work is being carried out at President Trump’s direction and involves agencies such as the Office of Foreign Assets Control and IRS Criminal Investigation.

The Justice Department has also opened an inquiry into Singham’s network, with a federal grand jury in the Southern District of New York issuing subpoenas for bank records as part of a wire fraud and money-laundering investigation, according to Fox News Digital.

Smith said the committee will continue to track financial flows and press for further action. Supporters of the targeted organizations have not publicly responded to the committee’s allegations or the ongoing investigations.