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Malliotakis bill targeting loophole she says could let foreign money influence U.S. elections advances
STATEN ISLAND, N.Y. — The House Ways and Means Committee has approved legislation introduced by Rep. Nicole Malliotakis that would restrict tax-exempt organizations from contributing to political committees after receiving money from foreign nationals.
Malliotakis, a Republican representing Staten Island and Brooklyn, introduced H.R. 9771, the Stopping Foreign Influence in Elections Act of 2026, which passed out of committee with the support of Chairman Jason Smith.
The bill seeks to close what sponsors describe as a loophole allowing foreign money to reach American political campaigns through a network of nonprofit organizations.
Under the legislation, tax-exempt organizations with at least $200,000 in annual gross receipts or $500,000 in assets would be prohibited from making contributions to political committees for two years after receiving a gift or contribution from a foreign national. The restriction would apply to both 501(c)(3) charitable organizations and 501(c)(4) social welfare organizations, which can make unlimited contributions to Super PACs.
The bill establishes escalating penalties for violations. Organizations that violate the prohibition three times would have their tax-exempt status suspended for two years beginning on the date of the prohibited contribution.
“Foreign nationals should not be able to use tax-exempt organizations as a vehicle to influence American elections,” Malliotakis said. “Our elections should be decided by American voters — not by foreign billionaires who can move money through a network of nonprofit organizations and political groups to influence our democratic process.”
Smith said the legislation would prevent tax-exempt organizations from becoming conduits for foreign political influence.
“Representative Malliotakis has offered a straightforward solution that will keep tax-exempt organizations in this country from becoming money laundering schemes for political influence coming in from abroad,” Smith said.
The bill now moves to the full House for consideration.