US Congress Investigates New Israel Fund for Illegal Political Funding in Israel

The New Israel Fund (NIF), a US-based charity, is under investigation by a US House committee for allegedly violating American tax laws by transferring millions of shekels to left-wing Israeli organizations for political activities. The probe was initiated after the NIF publicly admitted to funding protests against the Israeli government, including support for political groups such as the Berl Katznelson Foundation and the Idea organization.

Jim Jordan, chair of the House committee, sent a letter to the NIF in Israel accusing the fund of transferring over $350,000 to a left-wing group that promoted voter transportation for Bedouin voters in elections, nearly $100,000 for legal advice to the Joint List, and additional political support to protest organizations. Under US law, the NIF is classified as a tax-exempt charity and is prohibited from funding political activities that could influence elections in Israel.

The US government alleges that the NIF’s financial support for political protests constitutes an abuse of American tax laws. In response, the NIF stated that it has always complied with the law, noting that similar allegations were dismissed by a US court in 2019. The fund reaffirmed its commitment to promoting democracy, justice, and equality.

This investigation highlights ongoing tensions regarding foreign funding of political activities in Israel and the legal boundaries for US charities operating abroad. The House committee’s inquiry is in its initial stages, and further developments are expected as the investigation proceeds.