Congress Escalates Probe into Alleged Chinese Propaganda Network in US Nonprofits

House Ways and Means Committee Chairman Jason Smith has launched a formal investigation into two American nonprofits allegedly spreading Chinese Communist Party propaganda through tax-exempt organizations. The investigation targets BreakThrough BT Media Inc. and Tricontinental: Institute for Social Research, both allegedly tied to China-based American-born tech tycoon Neville Roy Singham.

In letters obtained by Fox News Digital, Smith demanded records from both organizations regarding their connections to Singham and potential violations of their tax-exempt status. The congressman alleges these groups may be operating as unregistered foreign agents while exploiting U.S. nonprofit laws to spread anti-American messaging and fuel domestic unrest.

“Tax-exempt status is a privilege not a right,” Smith told Fox News Digital. “Nonprofits must remain accountable and refuse to act as instruments of hostile foreign governments.”

The letters were sent Monday night, hours before Tuesday’s committee hearing titled “Foreign Influence in American Non-profits: Unmasking Threats from Beijing and Beyond.” Neither Singham nor the organizations responded to requests for comment.

Congressional investigators describe what they call a comprehensive influence operation where foreign-aligned funding flows into tax-exempt nonprofits that produce ideological research, media content, and coordinated messaging that is then deployed through street-level protests. The committee believes this operation specifically aligns with Chinese government interests.

In his letter to BreakThrough’s chair Karla Reyes, Smith expressed concern about the organization’s connections to “Chinese Communist Party linked organizations” and questioned whether it deserves its 501(c)(3) status. Smith cited federal law stating that tax exemptions can be revoked if a substantial part of an organization’s activities doesn’t further its exempt purpose.

Smith highlighted BreakThrough’s alleged ties to Singham, who “lives in Shanghai, maintains business ties with companies and individuals linked to the CCP, works with and physically alongside a foreign propaganda company, and attends CCP forums on how to promote the party abroad.” The congressman suggested these connections may qualify BreakThrough as an “agent of a foreign principal” under the Foreign Agents Registration Act.

The investigation places BreakThrough within a broader network that includes Tricontinental, the People’s Forum, the Party for Socialism and Liberation, and the ANSWER Coalition. Fox News Digital has previously reported on these groups working alongside organizations like the Democratic Socialists of America to coordinate protests and messaging during high-profile events, from immigration enforcement actions to international incidents.

In a parallel letter to Tricontinental’s Executive Director Vijay Prashad, Smith outlined similar concerns, describing the organization as “responsible for spreading Marxist and anti-American rhetoric across both the United States and the globe.” Committee investigators connected Prashad to Chinese state institutions, noting his role as a senior fellow at a think tank linked to China’s Ministry of Education.

The committee also documented Tricontinental’s financial relationship with Maku Group, a Chinese media company with an explicit mission to “tell China’s story well.” According to Smith, Tricontinental paid the firm more than $2.1 million for “research, analysis, and translation services.”

Smith’s investigation emphasizes that these nonprofits engage in what researchers call “narrative convergence,” echoing propaganda from foreign adversaries. The Network Contagion Research Institute recently found that groups like the Democratic Socialists of America have sent delegations to countries including China and Venezuela, then deployed similar anti-U.S. rhetoric at domestic protests upon their return.

National security analysts describe this hearing as a critical moment in what they term a “cognitive war,” where foreign adversaries potentially weaponize protest movements and information campaigns to weaken the United States from within.

Smith made clear the committee’s intent: “We’re going to follow the money and demand accountability to put a stop to Beijing’s exploitation of our tax-exempt sector.”