Senator Ted Cruz, R-Texas, is advancing legislation aimed at penalizing tax-exempt organizations that fund political violence, coinciding with a Justice Department investigation into the financial network of far-left financier Neville Roy Singham. The probe, authorized by Acting Attorney General Todd Blanche, is being led by U.S. Attorney for the Southern District of New York Jay Clayton.
Cruz's bill, the Stop Proxy Organizations Nurturing Subversive Operations and Riots Act, or SPONSOR Act, seeks to amend the Internal Revenue Code. It would expand the legal liability of 501(c)(3) nonprofits, making them criminally and civilly responsible for the actions of groups they sponsor or fund. Cruz stated that the legislation would provide law enforcement with necessary tools to trace funding, close loopholes, and ensure accountability for what he described as "radical groups to use tax-exempt funds to bankroll violent, anti-American activity opaquely and therefore with impunity."
According to a Fox News Digital investigation, Singham, an American tech entrepreneur residing in Shanghai, has directed approximately $278 million to a network of nonprofits since 2017. These organizations have been identified as mobilizing demonstrators for various protests, including those opposing U.S. Immigration and Customs Enforcement (ICE) and the state of Israel.
Singham has reportedly channeled funds through the Goldman Sachs Donor Advised Philanthropy Fund For Wealth Management Inc., including significant contributions to People's Forum Inc., a New York-based nonprofit described as a hub for left-wing activities. People's Forum is linked to several proxy organizations, such as the Venceremos Brigade, which has a history of collaborating with Cuban government officials on political and labor solidarity initiatives. ICE Out of New York, an organization that organizes protests against ICE operations, also uses the People's Forum for events and has coordinated demonstrations with its staff.
Other Republican lawmakers have voiced concerns about Singham's influence. Sen. Jim Banks, R-Indiana, has called Singham a "traitor" and alleged that his network poses a threat to the U.S. Banks pointed to CodePink, a 501(c)(3) nonprofit co-founded by Singham's wife, Jodie Evans, as an example of a group that has directly confronted him. Fox News Digital has identified direct funding from Singham to CodePink.
The SPONSOR Act is co-sponsored by Sen. Ted Budd, R-North Carolina, and its House version was introduced by Rep. Nathaniel Moran, R-Texas. Moran emphasized the need for Congress to protect the integrity of the nonprofit system and prevent tax laws from being exploited by extremist groups operating covertly.