Senator Ted Cruz, a Republican from Texas, has introduced a bill aimed at revoking the tax-exempt status of individuals and organizations that provide funding to nonprofits involved in political violence. This initiative comes as the U.S. Department of Justice investigates the financial activities of Neville Roy Singham, a financier associated with a network of nonprofits. Acting Attorney General Todd Blanche has authorized the investigation led by U.S. Attorney Jay Clayton in New York.
Cruz stated, "I’ve long said that Democrat billionaires are funding left-wing political violence to push anti-American and foreign-aligned interests through tax-exempt entities." He emphasized the importance of the DOJ's investigation into Singham's funding network, which he claims supports such activities.
The proposed legislation, known as the Stop Proxy Organizations Nurturing Subversive Operations and Riots Act (SPONSOR Act), seeks to amend the Internal Revenue Code, making 501(c)(3) nonprofits liable for the actions of the groups they fund. Cruz believes this will provide law enforcement with the necessary tools to track funding and enforce accountability.
According to a Fox News Digital investigation, Singham has reportedly funneled $278 million into various nonprofits since 2017, which have been involved in organizing protests across the United States. The investigation suggests that these nonprofits utilize fiscal sponsorships to evade scrutiny from law enforcement and tax authorities.
Singham has not responded to multiple requests for comment. His financial contributions have been routed through Goldman Sachs Donor Advised Philanthropy Fund, including significant donations to The People's Forum, a nonprofit known for its far-left activities. The People's Forum is linked to several proxy organizations, including the Venceremos Brigade, which has collaborated with the Cuban government.
Cruz, who chairs the Senate Judiciary Subcommittee on Federal Courts, has stated that loopholes in the tax code allow radical groups to use tax-exempt funds for violent activities without accountability. The bill is co-sponsored by Senator Ted Budd and has a counterpart in the House introduced by Representative Nathaniel Moran. Moran has emphasized the need for Congress to protect the integrity of the nonprofit system from exploitation by extremist groups.