Two senior House Republicans are sounding the alarm that the Chinese Communist Party is using U.S. nonprofit networks to undermine America’s push to build artificial‑intelligence (AI) data centers. In a letter obtained by Fox News Digital, Ways and Means Committee Chairman Jason Smith (R‑MO) and House Select Committee on the Chinese Communist Party Chair John Moolenaar (R‑MI) asked Treasury Secretary Scott Bessent and IRS Chief Executive Officer Frank Bisignano to investigate whether foreign money is being laundered through tax‑exempt charities to sabotage AI infrastructure.
Allegations of foreign‑directed funding
The lawmakers point to Neville Roy Singham, an American‑born tech entrepreneur with known ties to the Chinese Communist Party, who they say has funneled “hundreds of millions of dollars” into nonprofits that oppose data‑center construction. Recipients cited include the Party for Socialism and Liberation and the ANSWER Coalition, both of which have described themselves as pro‑China groups. Activists from these organizations recently staged a protest in Chapel Hill, N.C., displaying signs that combined anti‑Trump rhetoric with support for communist Cuba and a call to “SHUT IT DOWN!” for data‑center projects.
Smith emphasized that “under no circumstances can we allow an adversary, and our most serious competitor in AI infrastructure, to weaponize our own tax code and harm an emerging American industry.” He warned that China is “throwing gasoline on the fire” by providing a financial base for groups that claim to be grassroots but are, in his view, funded by foreign interests.
Calls for transparency and enforcement
The letter urges the Treasury and the IRS to determine whether donor‑advised funds and shell corporations are being used to “launder the origin of foreign‑directed money into American advocacy.” Smith also raised the possibility of violations of the Foreign Agents Registration Act, noting that transparency is essential to protect American civic processes.
Moolenaar added that many of these organizations appear to be “AstroTurf” – fake grassroots movements – that manipulate public opinion against American technological investments. He highlighted reports of online bots and coordinated messaging campaigns that amplify local concerns about electricity costs and water usage to stall data‑center development.
Evidence from investigations
A Fox News Digital investigation found that Singham directed $285 million since 2017 to six U.S. nonprofits, including his wife Jodie Evans’ group CodePink, using two shell corporations and a donor‑advised philanthropy fund operated by Goldman Sachs, which closed the Singham account in 2024. The nonprofits have retained tax‑deductible status while actively promoting regimes aligned with China and organizing protests that stir anti‑American sentiment.
OpenAI’s June report identified two clusters of ChatGPT accounts likely originating in China that were used in covert influence operations targeting U.S. debates over AI policy. One campaign, dubbed “Data Center Bandwagon,” spread claims that data‑center construction would raise electricity prices for average families. While OpenAI found no evidence of a breakout beyond its own activity, the report demonstrates how foreign actors can exploit existing local concerns.
Broader context
The lawmakers note that a bicameral group of congressional committees, including the Ways and Means Committee, the House Select Committee on the CCP, and the Senate Intelligence Committee, are examining how influence operations linked to the Chinese Communist Party exploit America’s tax‑exempt sector to sow discord and undermine democracy.
Both Smith and Moolenaar stress that while China remains a major trading partner, the United States must guard against dependence that could allow Beijing to manipulate American freedoms. “They are a serious adversary,” Moolenaar said, “and we must ensure our openness is not turned against us.”
Original reporting: Fox News (HLL/CB) — read the source article.
