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House Ways and Means hearing examines alleged foreign influence flowing through U.S. nonprofits
Summary
Witnesses told the House Ways and Means Committee that foreign donors and intermediaries can use fiscal sponsorships, donor‑advised funds and opaque nonprofit networks to finance advocacy, protests and litigation; members debated reforms including Form 990 modernization, FARA enforcement and the DISCLOSE Act.
Chairman Smith opened a House Ways and Means oversight hearing saying the panel has investigated ‘‘money trails behind tax‑exempt organizations’’ and will pursue abuses that, he said, ‘‘fuel antisemitism and interfere in elections.’’ He named groups and individuals he said were part of complex donor networks and vowed the committee would use available tools to hold actors accountable.
Witnesses detailed how foreign donations and multi‑layered grant flows can obscure original funders. Caitlin Sutherland, founding executive director of Americans for Public Trust, called the rise of ‘‘foreign dark money’’ a threat to democratic processes and cited reporting that, she said, identified billions routed through charities and donor vehicles to finance litigation, protests and advocacy. She urged stricter disclosure and tighter rules around how nonprofits participate in public…
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