House Republicans Urge IRS to Investigate Alleged Chinese Influence on U.S. AI Data Center Opposition

Two leading House Republicans have called on the Treasury Department and the IRS to investigate whether funds originating from China are being channeled through U.S. charitable organizations to impede the development of artificial intelligence data centers. In a letter sent Tuesday, House Ways and Means Committee Chairman Jason Smith (R-Mo.) and House Select Committee on the Chinese Communist Party Chairman John Moolenaar (R-Mich.) expressed concern that an adversary is leveraging American tax laws to hinder U.S. technological advancement.

At the center of their inquiry is American-born tech entrepreneur Neville Roy Singham, who has reportedly funneled hundreds of millions of dollars into U.S. nonprofits. The lawmakers allege that some of these recipient organizations, including the Party for Socialism and Liberation and the ANSWER Coalition, are actively campaigning against data center construction. These groups have been linked to protests that combine anti-Trump sentiments with support for communist regimes and opposition to AI development, sometimes under the banner "SHUT IT DOWN!"

"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," the lawmakers wrote in their letter. Smith stated that China is actively supporting opposition to U.S. AI infrastructure by funding these nonprofit groups, describing the situation as China "throwing gasoline on the fire."

The Republicans are urging the Treasury and IRS to determine if tax-exempt organizations linked to Singham’s network have operated for the private or political benefit of foreign-aligned interests. They also question whether donor-advised funds and intermediary entities have been used to obscure the origin of foreign-directed money used for U.S. advocacy.

A Fox News Digital investigation cited in the lawmakers' concerns found that Singham has directed $285 million since 2017 to six U.S. nonprofits, including his wife Jodie Evans' group, CodePink, through shell corporations and a donor-advised fund managed by Goldman Sachs. Goldman Sachs stated it closed the Singham account in 2024.

Moolenaar characterized some of these opposition groups as "astroturf" operations, alleging they are funded by entities working in partnership with the Chinese Communist Party (CCP). "The concern is that they are manipulating the messaging and opposition to different American investments, whether it’s data centers or other technological advances, trying to turn the American people against these technologies so that China would be able to have dominance in this area," Moolenaar told Fox News Digital.

Lawmakers point to reports from organizations like OpenAI and the Bitcoin Policy Institute, which have identified Chinese-linked influence operations and extensive campaigns by groups such as the Party for Socialism and Liberation against data center projects. These campaigns have reportedly contributed to data center moratoria, bans, and the shelving of projects representing billions in potential investment.

Smith emphasized that while legitimate concerns exist regarding data centers' impact on electricity costs and water usage, foreign-backed organizations should not exploit these issues to impede U.S. technological progress. "Tax exempt is a privilege. It is not a right," Smith said. "We need to make sure that we’re not subsidizing tax dollars to help create hostility and unrest in our country."

The lawmakers argue that the CCP seeks to divide Americans, manipulate public discourse, and degrade civic processes, particularly concerning AI and technology policy. They are seeking greater transparency into the funding and operations of these organizations to ensure that U.S. tax laws are not being exploited by foreign adversaries.

This inquiry follows broader oversight efforts by congressional committees examining how influence operations linked to the CCP allegedly exploit America’s tax-exempt sector to sow discord and undermine democratic processes.