Grassley sent letters to each foundation asking whether the reports are accurate and how any such payments comply with federal tax laws governing 501(c)(3) charitable status. "According to recent reports, [your organizations], through grants and direct payments, have funded the Chinese Communist Party (CCP) and its allies," Grassley wrote. "To maintain tax exempt status, an organization's activities must be charitable in nature and may not directly support or promote the interests of a foreign government."

The senator noted that under Section 501(c)(3) of the Internal Revenue Code, tax-exempt entities cannot directly promote the interests of a foreign government. While foundations may provide grants abroad, those funds must be used solely for charitable purposes.

According to financial reports cited in the inquiry, the Gates Foundation in 2023 sent roughly $11.7 million to CCP-affiliated entities, $2 million to a company tied to the Chinese military, and $6.7 million to state-run Chinese universities. The organization reportedly distributed another $23 million in 2022 to more than 20 Chinese entities, including some labeled "foreign governments."