Tech VC Keith Rabois threatens Republicans

A Republican megadonor on Tuesday threatened to chop off marketing campaign contributions to members of Congress until they vote for a invoice that might successfully ban TikTok in the USA.

“Won’t ever fund any Republican candidates or management PACs (or the NRSC) run by Republicans who vote in opposition to the TikTok laws,” enterprise capitalist Keith Rabois wrote on X.

On Wednesday, the Home is predicted to move a invoice to pressure 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 consumer knowledge pose a nationwide safety risk to the USA.

“Assist for the TikTok invoice is an IQ check” 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 line with a Federal Election Fee submitting.

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

For among the invoice’s supporters, that political calculus grew extra difficult 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 had been nonetheless unsure on Tuesday.

“On the Senate, it will likely be as much as the Democrat Chief [Chuck Schumer] to deliver it to the ground. If he does, we could have a transparent voting file” of the place every senator stands on the difficulty, Rabois instructed CNBC.

If the invoice had 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 internet hosting websites.

A managing director at Khosla Ventures, Rabois gave simply over $41,000 mixed final 12 months 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 will likely 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 referred to as it a “crucial nationwide safety invoice.”

Republican Whip Tom Emmer additionally helps the laws, and alleged in March 2023 that TikTok was “nothing however a CCP spy app, gathering the delicate info of 150 million American customers which may then be exploited by the Chinese language authorities.”