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Abbott Asks Treasury to Strip CAIR’s Tax-Exempt Status as Clash Moves to Federal Court

The move tests state power to label groups as terrorist against federal control over designations.

Overview

  • Gov. Greg Abbott sent Treasury Secretary Scott Bessent a formal request to investigate CAIR and suspend its 501(c)(3) status, alleging ties to the Muslim Brotherhood and Hamas.
  • Texas last month labeled CAIR and the Muslim Brotherhood terrorist and transnational criminal organizations under state law, triggering a property-purchase ban and state criminal probes.
  • CAIR filed a federal lawsuit calling the designation unconstitutional and defamatory, and it sent Treasury a rebuttal letter defending its nonprofit status and denying Abbott’s claims.
  • Treasury has not publicly acted on Abbott’s request, and federal processes govern foreign terrorist designations and tax-status suspensions, according to the coverage.
  • Abbott cites the Holy Land Foundation case and related filings to justify scrutiny, while Muslim leaders and local officials denounce the state actions as dangerous and unlawful.