Tech VC Keith Rabois threatens Republicans

A Republican megadonor on Tuesday threatened to cut off campaign contributions to members of Congress except they vote for a invoice that would successfully ban TikTok in the USA.

“Will never fund any Republican candidates or leadership PACs (or the NRSC) run by Republicans who vote against the TikTok legislation,” venture capitalist Keith Rabois wrote on X.

On Wednesday, the Home is anticipated to move a invoice to power TikTok’s mum or dad firm, China-based ByteDance, to unload the social media platform. Supporters of the invoice say ByteDance’s continued possession of TikTok and its troves of person knowledge pose a nationwide safety menace to the USA.

“Support for the TikTok bill is an IQ test” for members of Congress, Rabois wrote in an e mail to CNBC.

In February, Rabois gave $500,000 to the Congressional Management Fund, a political motion committee that backs Home Republican candidates, in keeping with a Federal Election Commission submitting.

Rabois’ menace may have vital sway over these Republican lawmakers nonetheless on the fence about whether or not to help the invoice.

For a few of the invoice’s supporters, that political calculus grew extra sophisticated final week when former President Donald Trump introduced he opposed the measure. The presumptive Republican presidential nominee was joined by Tesla CEO and billionaire Elon Musk, who additionally criticized the laws.

The invoice’s prospects within the Senate have been nonetheless unsure on Tuesday.

“On the Senate, it will be up to the Democrat Leader [Chuck Schumer] to bring it to the floor. If he does, we will have a clear voting record” of the place every senator stands on the difficulty, Rabois informed CNBC.

If the invoice have been to move the Senate and be signed into legislation, ByteDance would have simply six months to unload TikTok, earlier than the app is banned from American app shops and hosting websites.

A managing director at Khosla Ventures, Rabois gave simply over $41,000 mixed final yr to the Nationwide Republican Senatorial Committee. He additionally gave over $120,000 to the Nationwide Republican Congressional Committee, the NRSC’s Home counterpart.

Rabois stated that whether or not or not he continues to help the NRCC shall be partly tied to how Republican management handles the upcoming vote.

Home Speaker Mike Johnson, La., has signaled he plans to vote for the measure and Majority Chief Steve Scalise known as it a “critical national security bill.”

Republican Whip Tom Emmer additionally helps the laws, and alleged in March 2023 that TikTok was “nothing but a CCP spy app, collecting the sensitive information of 150 million American users which can then be exploited by the Chinese government.”