As Hillary Clinton approached the presidential nomination in 2016, FBI field officers recommended that she be questioned about foreign donations to the Clinton Foundation and the potential use of the charity for campaign financing. However, the investigation, codenamed "Cracked Foundation," lost momentum when FBI headquarters in Washington, D.C., did not pursue these leads. Documents released to the Senate Judiciary Committee reveal that FBI New York Assistant Director Diego Rodriguez had advised agents to address concerns regarding foreign bribery linked to the Clinton Foundation. Evidence included a recorded conversation between Clinton and Indian hotelier Sant Singh Chatwal, who had connections to the foundation and had previously pled guilty to campaign finance violations.

Chatwal, who was a trustee of the Clinton Foundation and a significant donor, was implicated in discussions about settling Clinton's campaign debt through foundation donations. The FBI had previously recorded Chatwal discussing illegal campaign contributions and sought to expand their investigation to the Clinton Foundation, but this was not permitted by FBI headquarters.

State Department documents, made public through Wikileaks, indicated that Chatwal had assisted in resolving Clinton's 2008 campaign debt. Investigators sought to question Clinton about whether donations to the foundation were used for personal expenses or to settle campaign debts. They also aimed to explore Chatwal's involvement in a controversial Indo-U.S. nuclear agreement, which allowed India to receive American nuclear technology without adhering to the Nuclear Non-Proliferation Treaty. Chatwal had celebrated the deal and claimed to have influenced Clinton's support for it.

The investigation raised concerns about the Clinton Foundation's acceptance of foreign funds while Clinton served as Secretary of State, despite her commitment to limit such donations. Questions were posed regarding the foundation's compliance with an agreement made with the Obama administration to disclose foreign contributions. Additionally, a second organization, the Clinton Guistra Sustainable Growth Initiative, was established shortly after this agreement, raising further questions about transparency in funding sources. Despite the evidence and inquiries, the FBI under the Obama administration did not pursue these leads, leading to frustration among field agents who felt their investigation was hindered.