Tax-exempt groups receiving money from foreign nationals would be banned from making PAC donations
CAPITOL HILL — A NEW BILL that Brooklyn Congressmember Nicole Malliotakis (R-11) introduced on Friday, the No Foreign Election Interference Act, would prohibit tax-exempt organizations that receive funding from foreign nationals from contributing to Political Action Committees. Malliotakis, a Republican who represents southwestern Brooklyn and Staten Island, and a member of the House Committee on Ways and Means, today introduced the legislation which, according to Congress.gov, would “amend the Internal Revenue Code of 1986 to impose penalties with respect to contributions to political committees from certain tax-exempt organizations that receive contributions from foreign nationals.” Malliotakis pointed out that while the Federal Election Campaign Act (FECA) prohibits foreign nationals from donating money to U.S. campaigns, there are no laws or regulations preventing foreign nationals from influencing U.S. elections by directing funds to 501(c)(3) and 501(c)(4) organizations or other tax-exempt organizations. Three disqualified contributions would result in the automatic revocation of tax-exempt status for the organization making the PAC donation.
Last month, Ways and Means Committee Republicans raised concerns to Internal Revenue Service Commissioner Daniel Werfel about foreign adversaries exercising influence over American-based tax-exempt organizations after recent reports came up; in this case, groups that Malliotakis identifies as being far-left and/or antisemitic.
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