Are top liberal groups illegally funded by China and Russia?

Amid reports that leading liberal political groups may be receiving hidden cash from the Russian and Chinese governments, congressional investigators are now demanding these tax-exempt organizations make their records transparent.

The U.S. House Committee on Ways and Means is “conducting an examination into whether entities that qualify as tax-exempt under Section 501 of the U.S. Code are abiding by the statutory and regulatory prohibitions against certain activities and whether foreign sources of funding are being funneled through such organizations to influence America’s elections,” the Committee announced in a statement.

Under Section 501(c) of the federal tax code, groups that engage in political lobbying or education can be exempt from federal taxation on the grounds they provide a public service. Many conservative and liberal groups use the designation.

Those groups do not have to publicly reveal their donors, which has allegedly allowed some liberal groups to receive illegal foreign donations.

As a part of the Committee’s investigation, Committee Chairman Jason Smith (MO-08) and Oversight Subcommittee Chairman David Schweikert (AZ-01) have “released an open letter to groups organized under Section 501(c)(3) or 501(c)(4) requesting information and input on existing rules and regulations governing them and foreign sources of funding for tax-exempt organizations and what, if any, policy changes Congress should consider,” the statement reveals.

“Public reporting has raised questions about whether tax-exempt sectors are operating in a manner consistent with the laws and regulations that govern such organizations and whether foreign funds are flowing through these organizations to influence American politics,” writes Smith and Schweikert.

“For example, the Committee has learned that a Super Political Action Committee (PAC) recommended donations to 501(c)(3) organizations as ‘the single most effective tactic for ensuring Democratic victories’ and that large donations from a wealthy donor to state election offices in 2020 may have been done in a manner that helps one political party over another,” the letter notes.

“Additionally, the Committee has also found that significant amounts of foreign money is flowing through 501(c)(3) and 501(c)(4) organizations to influence elections,” they add.