SouthernWorldwide.com – Senator Ted Cruz, a Republican from Texas, is intensifying his efforts with a bill aimed at holding tax-exempt sponsors accountable. This move comes as the Justice Department investigates the financial network of far-left financier Neville Roy Singham.
Cruz’s proposed legislation, the Stop Proxy Organizations Nurturing Subversive Operations and Riots Act (SPONSOR Act), was introduced in March. The bill seeks to amend the Internal Revenue Code to broaden the accountability of 501(c)(3) nonprofits for the groups they fund or sponsor.
Under the SPONSOR Act, these nonprofits would face criminal and civil liability for any legal violations committed by the entities they support. Critics have voiced concerns that nonprofits within the Singham network might be using fiscal sponsorships to evade scrutiny from law enforcement and tax authorities.
Senator Cruz stated that the SPONSOR Act is intended to “give law enforcement the tools they need to follow the money, close these loopholes and enforce accountability.” This legislation aims to provide authorities with more power to trace financial flows and ensure transparency.
The investigation into Singham’s network has highlighted concerns about the flow of funds to organizations involved in political activities. Neville Roy Singham reportedly channeled his financial contributions through a donor-advised fund, including a significant amount of $22.44 million to People’s Forum Inc.
People’s Forum Inc. is described as a 501(c)(3) nonprofit hub for far-left activities located in Manhattan. This organization has been linked to a number of other groups, some of which have faced controversy.
One such group connected to People’s Forum is the Venceremos Brigade. This organization has a history of working with Cuban government officials, facilitating visits for American activists to Cuba for political and labor solidarity purposes.
The donation page for the Venceremos Brigade explicitly identifies it as a fiscally-sponsored project of the People’s Forum. This connection raises questions about the financial ties between these entities.
Another group mentioned in connection with People’s Forum is ICE Out of New York. This organization is known for organizing protests against Immigration and Customs Enforcement (ICE) operations.
ICE Out of New York reportedly hosts events at the People’s Forum and has participated in various demonstrations alongside coordinators from People’s Forum. These collaborations suggest a degree of coordination between the two groups.
Senator Cruz, in his capacity as chairman of the Senate Judiciary Subcommittee on Federal Courts, Oversight, Agency Action and Federal Rights, oversees grants to the Justice Department. His committee is also responsible for regulating the court system and regularly holds hearings with Justice Department officials.
When the SPONSOR Act was introduced, Cruz emphasized that “Loopholes in the Internal Revenue Code allow radical groups to use tax-exempt funds to bankroll violent, anti-American activity opaquely and therefore with impunity.” He further stated that recent violence in cities and on college campuses is not spontaneous but “enabled by funding from well-resourced organizations that exploit such loopholes, including and especially through fiscal sponsorships.”
The SPONSOR Act has garnered support from other Republican lawmakers. Senator Ted Budd of North Carolina is a co-sponsor of the bill. In the House of Representatives, a similar version was introduced by Representative Nathaniel Moran of Texas.
Representative Moran commented on the legislation, stating that “Congress has a duty to safeguard the integrity of our nonprofit system and ensure our tax laws are not exploited by extremist or radical groups operating in the shadows.”
Cruz’s initiative is part of a broader criticism from several GOP lawmakers regarding what they perceive as Singham’s pro-Chinese Communist Party (CCP) influence in the United States. Senator Jim Banks of Indiana has been particularly vocal, going as far as to label Singham a “traitor.”
“Neville Singham is a traitor to our country. He has ties to the CCP,” Banks stated. He further elaborated, “He is an American citizen, but all of his loyalties lie with the Chinese Communist Party. And when you begin to untangle the web of his massive fortune and his philanthropic activities, the money that he sends to left-wing groups in America, and not just groups that espouse ideologies, but espouse violence.”
