House Ways & Means Chair Calls on IRS to Revoke Tax-Exempt Status of Multiple Pro-Terror Orgs
Chairman Jason Smith's letter specifically names American Muslims for Palestine, The People’s Forum, Palestine Chronicle, and others as groups targeted for revocation of their tax-exempt status.
On October 6, 2025, House Ways & Means Committee Chairman Jason Smith (MO-08) sent a forceful letter to the Internal Revenue Service (IRS), demanding that it revoke the tax-exempt status of a series of nonprofit organizations with links to designated foreign terrorist entities and to domestic political violence.
The timing of the letter coincides with the anniversary of the October 7, 2023, Hamas-led massacre in Israel, which Smith invokes as part of the justification for heightened scrutiny. He argues that both ongoing unrest within the U.S. and disruptions on university campuses, combined with suspected international funding pathways, make it imperative for the IRS to act. Highlighting the urgency of the matter, Smith emphasized the need for stronger regulatory actions, including revoking tax benefits for such entities:
“In light of the anniversary of the October 2023 violent attack on Israel, along with recent acts of political violence and the continued disruptive activities of previously identified organizations that have been sowing chaos in the United States and have links to designated foreign terrorist groups, it is imperative that action is taken to ensure tax-exempt groups are operating within their tax-exempt purpose.”
Organizations Targeted and Allegations
Americans for Justice in Palestine Educational Foundation (AJP)
AJP, affiliated with American Muslims for Palestine (AMP), is accused of funneling resources to Hamas and maintaining ties to designated terrorist groups. Investigations and lawsuits allege that AJP supports and finances activities linked to Hamas through fiscally sponsored projects like Students for Justice in Palestine (SJP), which has been involved in antisemitic protests and campus disruptions.
Credit: National Post American Muslims for Palestine (AMP)
AMP, a Virginia-based group, is alleged to have strong organizational and personnel ties to Hamas and Hamas-affiliated organizations. It has been involved in organizing protests on college campuses under the banner of SJP. Congressional reports cite AMP as a hub for supporting terror-linked activities, including funding and coordinating demonstrations that have led to violence and hatred.
AMP Leadership. Credit: FDD Islamic Relief USA
Islamic Relief USA is suspected of having terrorist affiliations and of using its nonprofit status to support extremist causes. Though not detailed as extensively in the letter, it is included among the organizations under scrutiny for diverting funds towards terrorism-related efforts.
Credit: Civil Society Alliance for Global Justice and Samidoun
The Alliance for Global Justice, an Arizona-based 501(c)(3), fiscally sponsors Samidoun, a group designated as a terrorist organization by the Department of Treasury for its fundraising activities on behalf of the Popular Front for the Liberation of Palestine (PFLP). Samidoun is linked to inciting violence and coordinating unrest domestically.
WESPAC Foundation and Tides Foundation
These organizations have been implicated in supporting projects that disrupt college campuses and incite violence and antisemitism. Their fiscal sponsorships underpin groups, such as Within Our Lifetime, involved in protests and illegal activities that disturb public order.
Peoples Media Project (The Palestine Chronicle)
The People’s Media Project, operating under the Palestine Chronicle name, employed a journalist who held Israeli hostages for Hamas, raising concerns about its operations providing material support to terrorism.
The People’s Forum
This 501(c)(3) organization is highlighted for its connections to Neville Roy Singham, a U.S. businessman aligned with the Chinese Communist Party. The Forum is implicated in fostering disruption, including involvement in anti-immigration activism and protests that have resulted in violent incidents and multiple arrests.
Fiscal Sponsorships & Funding Channels
The Committee’s investigations reveal a pattern where certain organizations employ complex fiscal sponsorships and opaque financial arrangements to circumvent oversight while supporting extremist causes.
For example, Americans for Justice in Palestine Educational Foundation, American Muslims for Palestine, and Islamic Relief USA face allegations of funneling funds to Hamas and related groups. Similarly, the Alliance for Global Justice sponsors Samidoun, which has been designated a terrorist entity in the U.S., Canada, Israel, and Germany.
Other groups such as the Tides Foundation and Westchester Peace Action Committee engage in underwriting activities that incite violence and antisemitism on campuses across the country. The letter cites specific examples of illegal conduct, antisemitic rhetoric, and coordination with designated terrorist networks, all inconsistent with IRS tax-exempt criteria.
Enhanced Transparency and Enforcement Priorities
Smith stresses the critical need for greater financial transparency and enforcement rigor. Enhanced disclosure requirements regarding funding sources and activities will improve IRS monitoring capabilities and limit exploitable loopholes. Closing gaps in oversight and expanding investigations into suspicious nonprofits are essential to stemming the flow of tax-exempt funds to illicit ends. Stronger inter-agency data sharing facilitates the detection and disruption of terrorist financing under the guise of charitable work.