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 move comes as the Justice Department investigates the financial activities of Neville Roy Singham, a financier linked to a network of nonprofits. Acting Attorney General Todd Blanche has authorized the investigation led by U.S. Attorney for the Southern District of New York, Jay Clayton.
Cruz stated that he believes wealthy Democrats are financing left-wing political violence through tax-exempt entities. He introduced the Stop Proxy Organizations Nurturing Subversive Operations and Riots Act, or SPONSOR Act, which seeks to amend the Internal Revenue Code to expand the liability of 501(c)(3) nonprofits for the actions of the groups they sponsor. The legislation would hold these nonprofits criminally and civilly liable for violations committed by their sponsored entities.
Critics of the Singham network argue that these nonprofits utilize fiscal sponsorships to evade detection by law enforcement and tax authorities. Cruz emphasized that the SPONSOR Act is intended to 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. These organizations have been involved in mobilizing protests across the country, including those against U.S. Immigration and Customs Enforcement (ICE) and Israel.
Singham has not publicly responded to inquiries regarding his financial activities. His contributions have included significant donations to The People's Forum, a nonprofit known for its leftist activities in Manhattan. The People's Forum is associated with several proxy organizations, including the Venceremos Brigade, which has collaborated with the Cuban government.
Cruz, who chairs the Senate Judiciary Subcommittee on Federal Courts, Oversight, Agency Action and Federal Rights, stated that existing loopholes in the Internal Revenue Code allow radical groups to use tax-exempt funds to support violent activities without accountability. The bill has garnered support from other Republican lawmakers, including Senator Ted Budd and Representative Nathaniel Moran, who have expressed concerns about the integrity of the nonprofit system and the influence of extremist groups.