{"id":166,"date":"2026-06-03T17:15:09","date_gmt":"2026-06-03T17:15:09","guid":{"rendered":"https:\/\/modernhomejournals.com\/?p=166"},"modified":"2026-06-03T17:15:09","modified_gmt":"2026-06-03T17:15:09","slug":"republicans-are-investigating-anti-data-center-nonprofits-over-their-china-ties","status":"publish","type":"post","link":"https:\/\/modernhomejournals.com\/?p=166","title":{"rendered":"Republicans Are Investigating Anti-Data-Center Nonprofits Over Their China Ties"},"content":{"rendered":"
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The chair of a powerful House committee says U.S. nonprofits taking money from China are stirring domestic opposition to data centers and should be penalized, a move that could set up a confrontation in the broader battle over artificial intelligence.<\/p>\n

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Rep. Jason Smith of Missouri, the chair of the House Ways and Means Committee, said in an interview that China is funding numerous nonprofits to turn the American public against the data centers pivotal to AI development. Smith, who has launched his own investigations, is calling on Treasury Secretary Scott Bessent to strip these entities of their tax-exempt status, arguing that the government should not effectively aid groups that \u201cjeopardize our national and economic security.\u201d<\/p>\n

\u201cWe\u2019ve tracked down Chinese money that\u2019s come into U.S. non-for-profits that are organizing the protests against data centers because China wants to win computational dominance,\u201d Smith said. \u201cIf they can sow discord and chaos within the American citizenry, they\u2019ll slow down [America in] the AI race \u2014 and they win. We have to be guarded.\u201d<\/p>\n

Asked about Smith\u2019s comments, a Treasury spokesperson said in a statement: \u201cTax-exempt status is not a shield for foreign influence. Organizations that misuse charitable structures to advance foreign interests undermine our laws, our democracy, and public trust.\u201d<\/p>\n

Legal action against U.S. nonprofits would represent a significant move and help the tech industry overcome domestic opposition. Legal experts also warn it could be another example of the Trump administration weaponizing the tax code for political purposes.<\/p>\n

\u201cPeople should think twice about using the tax code or the IRS to go after ideas or taxpayers you don\u2019t like,\u201d said Nina E. Olson, executive director of the Center for Taxpayer Rights. \u201cIt breeds distrust of the tax agency and negatively impacts compliance \u2026 and it could be used against you when you are out of power.\u201d<\/p>\n

Smith has previously singled out the news sites BreakThrough News and Tricontinental, as well as the activist group The People\u2019s Forum, over the donations they have received from U.S. expatriate Neville Roy Singham, a former tech mogul living in Shanghai. Smith has threatened to send subpoenas to these groups if they refuse to turn over the internal financial records he has demanded.<\/p>\n

BreakThrough News, Tricontinental and The People\u2019s Forum did not immediately respond to requests for comment.<\/p>\n

Policymakers are grappling with public unease over the giant new data centers springing up across the country. At least 14 states have proposed<\/u><\/span> restrictions or bans on the facilities since the end of last year, while dozens of municipalities throughout the country have already put them into effect. Roughly 7 in 10 Americans now oppose<\/u><\/span> the construction of AI data centers near them, according to Gallup.<\/p>\n

This resistance poses a threat to the technological and economic development of artificial intelligence. Tech companies have eyed nearly $7 trillion in new physical infrastructure through 2030<\/u><\/span> to support the coming AI boom. Some lawmakers and experts fear that new governmental hurdles could stall progress and compromise the U.S. as it competes with Chinese tech firms.<\/p>\n

Of domestic opposition to data centers, Smith said: \u201cI absolutely believe it\u2019s sparked by foreign actors.\u201d<\/p>\n

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Critics have pointed to a range of other explanations for domestic resistance to data centers, including their impacts on utility prices and the environment. Surveys suggest that many Americans are not yet convinced that they will benefit from artificial intelligence, fearing for their jobs, among many other concerns.<\/p>\n

\u201cAmericans are riproaring mad about data centers because of what they are doing to their communities, families and utility bills,\u201d said Lindsay Owens, executive director of the Groundwork Collaborative, a left-leaning think tank. \u201cAttributing what is quickly becoming a mass movement to nonprofits is a conspiracy theory and nothing else.\u201d<\/p>\n

To actually strip these nonprofits of tax-exempt status, the IRS would likely have to declare them a terrorist organization or allege they are receiving support from one, according to Olson. That would be an unthinkable move under most administrations, but the Trump administration has issued many such declarations recently. Even if those rulings are overturned by the courts, these fights can prove expensive and cumbersome for nonprofits to fight.<\/p>\n

Smith appears to be the highest-ranking Republican thus far to directly blame China for the data center opposition, but several others have recently made similar suggestions. Interior Secretary Doug Burgum last week cited the role of \u201cforeign-directed propaganda\u201d in fueling data center opposition, and billionaire Kevin O\u2019Leary of \u201cShark Tank\u201d blamed the Chinese Communist Party for opposition in Utah to a 40,000-acre data center. <\/p>\n

The Bitcoin Policy Institute also released a report last month identifying billions funneled by Swiss, British and Chinese billionaires into groups \u201cdriving the anti-data-center campaign,\u201d which has provided the basis for many of the allegations. Wired also reported<\/u><\/span> last month that U.S. law enforcement is investigating \u201canti-tech extremism.\u201d<\/p>\n

Some people who share Smith\u2019s concerns about AI competitiveness have questioned the tactical upside of tying data center opposition to Chinese influence.<\/p>\n

\u201cWe desperately need\u201d the data centers to serve billions of AI users, said Ryan Fedasiuk, a fellow at the American Enterprise Institute, a right-leaning think tank, in a post on X.<\/u><\/span> \u201cPretending AI anxiety is fake and that China is just astroturfing the biggest political risk of our time is the surest path to failure.\u201d<\/p>\n

Smith, however, argued that the stakes of the AI competition mean Treasury needs to act, and said the committee would be pushing to publicize the results of its findings.<\/p>\n

\u201cWe have to be guarded,\u201d Smith said. \u201cWe\u2019re going to continue to make it public, because it\u2019s madness.\u201d<\/p>\n

Read more As Pelosi Retires From Congress, Scott Wiener and Connie Chan Advance in Race to Succeed Her<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The House Ways and Means Committee chair said nonprofits are trying to \u201csow discord and chaos within the American citizenry\u201d to China\u2019s benefit.<\/p>\n","protected":false},"author":1,"featured_media":165,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-congress"],"yoast_head":"\nRepublicans Are Investigating Anti-Data-Center Nonprofits Over Their China Ties - Modern Home Journals<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/modernhomejournals.com\/?p=166\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Republicans Are Investigating Anti-Data-Center Nonprofits Over Their China Ties - Modern Home Journals\" \/>\n<meta property=\"og:description\" content=\"The House Ways and Means Committee chair said nonprofits are trying to \u201csow discord and chaos within the American citizenry\u201d to China\u2019s benefit.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/modernhomejournals.com\/?p=166\" \/>\n<meta property=\"og:site_name\" content=\"Modern Home Journals\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-03T17:15:09+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=166#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=166\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#\\\/schema\\\/person\\\/533de239efc09a2ab59959cc1bff86d0\"},\"headline\":\"Republicans Are Investigating Anti-Data-Center Nonprofits Over Their China Ties\",\"datePublished\":\"2026-06-03T17:15:09+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=166\"},\"wordCount\":982,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=166#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/eb9a9923ddad46a074cec50d180216d5-scaled.jpg\",\"articleSection\":[\"Congress\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/modernhomejournals.com\\\/?p=166#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=166\",\"url\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=166\",\"name\":\"Republicans Are Investigating Anti-Data-Center Nonprofits Over Their China Ties - Modern Home Journals\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=166#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=166#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/eb9a9923ddad46a074cec50d180216d5-scaled.jpg\",\"datePublished\":\"2026-06-03T17:15:09+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#\\\/schema\\\/person\\\/533de239efc09a2ab59959cc1bff86d0\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=166#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/modernhomejournals.com\\\/?p=166\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=166#primaryimage\",\"url\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/eb9a9923ddad46a074cec50d180216d5-scaled.jpg\",\"contentUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/eb9a9923ddad46a074cec50d180216d5-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"UNITED STATES - SEPTEMBER 14: Rep. 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