WASHINGTON D.C. – June 11, 2026 – The Department of Health and Human Services (HHS) is investigating the Council on American-Islamic Relations (CAIR) over alleged grant abuses and terror links. The probe could end in debarment, cutting the group off from all federal funding for up to a decade. The Middle East Forum (MEF) brought the allegations to the attention of HHS officials and members of Congress, along with recommendations to pursue CAIR’s suspension and debarment.
On Tuesday, the New York Post reported that HHS is probing the allegations against CAIR and could propose its debarment, prohibiting federal agencies from providing grants and contracts to CAIR.
“If there is evidence of fraud, abuse, or ties to designated terrorist organizations, we will act.”
“HHS has requested a review of allegations involving” CAIR and “its affiliates” in California and Washington, HHS Secretary Robert Kennedy, Jr., confirmed in a Tuesday X post. “If there is evidence of fraud, abuse, or ties to designated terrorist organizations, we will act,” Kennedy promised.
Citing a congressional letter, HHS Assistant Secretary for Financial Resources Gustav Chiarello wrote to California Gov. Gavin Newsom (D) on June 9, 2026, pointing to “$27 million in HHS-originated funds” that were sub-granted to CAIR-California through the state’s Department of Social Services, and raising “concerns about the business practices and ethics” of CAIR.
“Congressman Chip Roy and other members of Congress have informed HHS that there may be connections between CAIR and the Muslim Brotherhood and its Palestinian branch, Hamas,” Chiarello wrote.
Months ago, MEF held top-level meetings with HHS officials to brief them on CAIR’s potential violation of federal grant terms under Part 180 of Title 2 of the Code of Federal Regulations, the regulation dealing with suspensions and debarments. At the same time, MEF staff asked Congress members to urge HHS to move forward with debarment. On April 27, Rep. Chip Roy (R-Texas) and 13 House Republicans sent a letter to Kennedy calling for CAIR’s debarment and citing its alleged terror links and reported grant abuses.
HHS appears to cite two causes of debarment. First, Secretary Kennedy’s reference to “fraud” and “abuse” tied to “the use of federal grant funds” may represent a “violation of the terms of a public agreement or transaction so serious as to affect the integrity of a Federal agency program.” Last year, the Intelligent Advocacy Network (IAN) published a complaint detailing CAIR’s alleged grant abuses tied to $7.2 million in HHS-originated funding intended for Afghan refugee resettlement. IAN claimed that CAIR improperly sub-granted portions of this money to its own chapters in violation of grant terms and failed to provide legal services to the agreed number of clients, among other improprieties.
Second, HHS is investigating CAIR’s alleged links to Hamas and other terrorist groups, which may represent a “cause that is so serious or compelling in nature that it affects your present responsibility,” according to debarment guidelines. CAIR’s possible connections and support for terrorists are a matter of public record, from its status as an unindicted co-conspirator in the 2007 Holy Land Foundation trial, to the seven CAIR members arrested, convicted, or deported for terrorism-related crimes.
Despite this record, CAIR has received more than $40 million from HHS since 2023, according to audit data uncovered by IAN. If HHS initiates debarment, CAIR could face a government-wide moratorium on funding for as long as 10 years. The precedent exists. In February, USAID’s Office of Inspector General secured the 10-year, government-wide debarment of a former UNRWA school principal for participation in the October 7 terrorist attacks in Israel.
“Debarment is a major punishment removing the opportunity to take and misuse U.S. taxpayer dollars.”
“Debarment is a major punishment removing the opportunity to take and misuse U.S. taxpayer dollars,” said Jim Hanson, chief strategist for the Middle East Forum. “We built the case file and briefed the officials. CAIR’s record did the rest.”
For more than a decade, MEF has spotlighted government funding of extreme, terror-linked Islamist groups. In 2025, MEF reports and congressional testimony contributed to billions of dollars in cuts to federal agencies like the U.S. Agency for International Development and Department of Homeland Security.
The HHS review is one front in a broader effort by lawmakers and civil society to confront terror-linked nonprofits. In April, Roy introduced H.R. 8236, the Designating Hamas Affiliates in America Act, which directs the Treasury Department to list CAIR as a Specially Designated Global Terrorist. On June 9, a broad coalition of Middle Eastern diaspora communities, faith-based groups, Muslim reform organizations, legal associations, and human-rights defenders urged Congress to pass the bill.
“For 20 years Washington treated debarment as a dead letter while terror-linked groups cashed federal checks,” said Gregg Roman, MEF’s executive director. “That era is over. Debar them. Delist them. Designate them. CAIR is the first name on the list. It will not be the last.”
About the Middle East Forum
The Middle East Forum is a Philadelphia-based applied policy research organization that promotes U.S. interests in the Middle East and protects Western civilization from Islamist threats. Founded in 1994, MEF pairs rigorous analysis with direct-action programs to advance U.S. leadership, support America’s allies, and defend religious liberty worldwide.
For more information, visit www.meforum.org
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For more information, contact:
Gregg Roman
Roman@MEForum.org
+1 (215) 546 5406
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