Tuesday, September 1, 2026

Dark Money Fuels State-Level Anti-China Legislation Amid Free Speech Concerns

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A wave of anti-China legislation is sweeping across various states, raising significant concerns among civil liberties advocates and ordinary citizens alike. Critics argue that these laws, while ostensibly aimed at curbing Chinese influence, may instead chill free speech and impose burdensome regulations on individuals and organizations. This legislative trend has drawn comparisons to the McCarthy era, with fears that it could lead to politically motivated civil penalties and a culture of fear surrounding foreign affiliations.

James Czerniawski, head of emerging technology policy at the Consumer Choice Center, articulates a prevalent concern: “There’s often a fair debate to be had over China’s influence. But my bigger concern is that states are greenlighting a second Red Scare.” This sentiment reflects a growing unease about the implications of these laws for civil liberties and the potential for misuse against those who engage with foreign entities.

States like Nebraska, Louisiana, Arkansas, and Texas have enacted sweeping foreign influence registries. Nebraska’s Foreign Adversary and Terrorist Agent Registration Act exemplifies this trend, establishing a registry for individuals and organizations acting on behalf of entities from designated “adversary” countries, including China, Cuba, Iran, North Korea, Russia, and Venezuela. The law’s expansive requirements mean that businesses, universities, and even humanitarian organizations could be compelled to register if they engage in advocacy on behalf of foreign principals—defined as entities at least 20 percent owned by foreign interests.

The implications of such legislation are profound. For instance, a Nebraska university hosting a talk at the behest of a Cuban dissident could be required to register, as could local farmers selling crops to companies with even a fraction of foreign ownership. The chilling effect of these laws is underscored by the potential penalties, which include fines of up to $50,000 and, for noncitizens, deportation.

Behind this legislative push are organizations like State Shield and State Armor, which have emerged with opaque funding sources. These dark-money entities have been instrumental in advocating for state-level foreign agent registries that extend far beyond the federal Foreign Agents Registration Act (FARA). The lack of transparency regarding their funding raises questions about the motivations driving these legislative efforts. Michael Lucci, founder of State Armor, has claimed that their donors do not have financial interests in the work, yet the identities of these donors remain undisclosed.

The legislative momentum is fueled not only by these organizations but also by a broader political climate that views China as a significant threat. As Czerniawski notes, “China is the magic word these days.” This sentiment has led to increased scrutiny of universities collaborating with Chinese researchers and heightened investigations into foreign influence.

The implications of these laws extend beyond mere registration requirements. They create an administrative burden for everyday citizens and businesses, many of whom may struggle to navigate the complexities of compliance. Spike Eickholt, a government liaison at the ACLU of Nebraska, highlights the confusion that could arise: “A lot of everyday businesses will be stumped when they have to attest to this question: Are you in compliance with the Foreign Adversary and Terrorist Agent Registration Act?” This uncertainty could deter individuals and organizations from engaging in legitimate activities, stifling free expression and collaboration.

As these laws continue to proliferate, the potential for politicized enforcement looms large. The vague language in the legislation allows for discretion in how it is applied, raising concerns that it may be used selectively against those with dissenting views. Nick Robinson, a senior legal adviser at the International Center for Non-for-Profit Law, warns of the dangers posed by such broad and vague laws, suggesting they could be weaponized against political opponents.

The American Legislative Exchange Council (ALEC), a powerful nonprofit organization, is also playing a role in this legislative landscape. ALEC has proposed model legislation that mirrors the Nebraska bill, indicating that similar laws may soon be adopted in other states. This coordinated effort underscores the potential for a nationwide trend that could further entrench anti-China sentiment in state policies.

As the situation evolves, it is crucial for citizens to remain informed and engaged. Understanding the implications of these laws and advocating for transparency and accountability in their implementation is essential to safeguarding civil liberties. The balance between national security and individual rights must be carefully navigated to prevent a repeat of historical overreach that stifles dissent and undermines democratic values.

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