Congressional Scrutiny Intensifies on Foreign Ties and Tax-exempt Groups

House Ways and Means Committee Chairman Jason Smith (R-MO) announced this week that the committee will hold a Feb. 10 hearing examining how foreign actors have allegedly funneled millions of dollars through networks of tax-exempt organizations to create, support and fuel disruption and illegal activity across the country.

Smith has made scrutiny of foreign influence on nonprofit organizations a recurring focus of committee investigations in recent years. 

Separately, Smith and Ways and Means Oversight Subcommittee Chair David Schweikert (R-AZ) sent a letter yesterday to the Future Farmers of America (FFA) raising concerns about the nonprofit’s connections to the Chinese government and its alleged emphasis on diversity, equity and inclusion (DEI) initiatives. The lawmakers specifically cited FFA’s relationship with Syngenta, a global agricultural company wholly owned since 2017 by the Chinese state-owned enterprise Sinochem Holdings.

The letter questions whether these activities could put FFA’s tax-exempt status at risk. “Working with our nation’s foreign adversaries and prioritizing woke policies over your mission raises serious concerns regarding whether the National FFA is complying with the requirements to maintain tax-exempt status,” the lawmakers wrote.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.