The House Ways and Means Committee held an expansive hearing on foreign influence in U.S. nonprofit organizations, probing how international donors and predominantly left-wing nonprofit networks may be shaping domestic politics and ballot initiatives under the cover of tax-exempt status. The hearing, titled “Foreign Influence in American Non-profits: Unmasking Threats from Beijing and Beyond,” drew bipartisan attention to the mechanics of influence and the need for transparency in nonprofit funding.
Ways and Means Chair Jason Smith (R., Mo.) opened the hearing by underscoring that foreign actors have been able to funnel millions through tax-exempt networks in ways that can affect U.S. public policy and civic outcomes. Smith highlighted concerns that multiple foreign players, including Swiss billionaire Hansjörg Wyss, have used loopholes in U.S. nonprofit law to inject billions into left leaning advocacy efforts that align with foreign interests.
In questions to the witnesses, Rep. Mike Carey (R., Ohio) used the fight around the 2024 Ohio Issue 1 ballot measure to illustrate how foreign-linked funds can operate within broader domestic advocacy networks. Carey recounted how millions of dollars flowed through the Sixteen Thirty Fund, an Arabella Advisors-aligned nonprofit used to bankroll issue campaigns into initiatives like Issue 1, which became a flashpoint in Ohio’s political landscape just under two years ago.
Carey noted that the state responded by passing legislation to ban foreign contributions to ballot measure campaigns, a reform now mirrored in nearly 20 states. He pressed witnesses on why similar legislation has not become more widespread, stressing that the loophole undermines election integrity by allowing foreign-sourced wealth to shape laws and civic outcomes without adequate public disclosure.
Caitlin Sutherland, the executive director of Americans for Public Trust (APT), confirmed that the legal framework currently permits foreign nationals to support ballot initiatives through nonprofits, a loophole she described as “huge.” Scott Walter of the Capital Research Center (CRC) added that the Sixteen Thirty Fund and similar entities under the left-wing Arabella network operate multiple fiscal sponsorships that can channel substantial sums into issue campaigns. Walter also criticized legal challenges to state reforms, calling lawsuits against Ohio’s foreign money ban “shameful.”
Lawmakers and witnesses agreed that ballot initiatives have become potent tools not just for state policy change, but also for driving turnout and indirectly influencing candidate elections, fueling concerns about how foreign and large domestic donors shape public policy with minimal transparency.
The hearing’s witnesses also included experts on nonprofit finance and political activity who offered testimony and recommendations for more IRS oversight and potential legislative fixes. As Smith said in his opening remarks, the aim was to “follow the money” and ensure that U.S. laws keep pace with evolving influence tactics.
