(Editor’s note: This story has been updated to include a response from the Gates Foundation)
The Bill & Melinda Gates Foundation is facing a formal inquiry from the U.S. Senate over allegations it has funded the Chinese Communist Party (CCP) and its allies, potentially in violation of its tax-exempt status.
$23 Million In Grants Were Paid To 20 Chinese Entities
In a letter dated Oct. 27, 2025, Senate Judiciary Committee Chairman Charles E. Grassley (R-Iowa) confronted foundation CEO Mark Suzman with reports of “grants and direct payments” to Chinese state-run entities. The letter alleges that in 2022, the foundation provided approximately $23 million to over 20 different Chinese entities.
The inquiry centers on the foundation’s $47.78 billion trust, which holds substantial stakes in Microsoft Corp. (NASDAQ:MSFT), Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK), and Waste Management Inc. (NYSE:WM), and remains a significant force in the market.
A spokesperson for the Gates Foundation told Benzinga, “We have received the Senate Judiciary Committee's letter. The Gates Foundation complies with all laws governing our charitable work and tax-exempt status. Guided by the belief that every life has equal value, the foundation works to help all people lead healthy, productive lives.”
Foundation’s Tax-Exempt Status Probed Over Government Grants
Senator Grassley's letter questions how the foundation's conduct “comports with 501(c)(3) requirements,” noting that IRS guidance states “direct grants to foreign governments do not serve IRC 501(c)(3) purposes.” The committee has requested a response and related records by November 10, 2025.
The allegations put a spotlight on the financial operations of one of the world’s largest philanthropic organizations, which is also a major institutional investor.
Two-Thirds Of His Foundation’s Portfolio Is In These 3 Stocks
According to its second quarter 2025 13F filings, the Gates Foundation Trust's portfolio is heavily concentrated, with 67% of its $47.78 billion value held in just three stocks.
The foundation’s largest holding is in Microsoft, valued at $13 billion or 27% of its portfolio. This is followed by an $11.7 billion stake in Warren Buffett’s Berkshire Hathaway and a $7.3 billion stake in Waste Management.
The foundation, which follows a value investing playbook, also holds other significant positions, including over $5.7 billion in Canadian National Railway Co. (NYSE:CNR) and $2.8 billion in Caterpillar Inc. (NYSE:CAT).
MSFT Soars Nearly 30% In 2025
MSFT, which is slated to announce earnings on Wednesday, closed 1.98% higher at $542.07 per share on Tuesday. It was up 29.50% year-to-date and 25.33% over the year. MSFT maintains a stronger price trend over short, medium, and long terms, with a poor value ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
On Wednesday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were mixed.
Meanwhile, on Tuesday, the S&P 500 index ended 0.23% higher at 6,890.89, whereas the Nasdaq 100 index rose 0.74% to 26,012.16. On the other hand, Dow Jones advanced 0.34% to end at 47,706.37.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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