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Texas Governor Greg Abbott (R) has formally directed Attorney General Ken Paxton (R) to pursue enforcement action against the Council on American-Islamic Relations (CAIR) under existing state and federal law. In a letter sent to the Office of the Attorney General, Abbott requested that Paxton use statutory authority to investigate CAIR, seek forfeiture of its nonprofit status if warranted, and eliminate its ability to operate in Texas.
Abbott’s directive follows his November 2025 proclamation designating CAIR and the Muslim Brotherhood as foreign terrorist organizations and transnational criminal organizations under Texas law. That designation is currently being challenged in federal court, and litigation remains ongoing.
Attorney General Paxton has proceeded with enforcement actions while the litigation over the designation is pending. These actions include investigations involving public school districts, document demands related to CAIR-affiliated activities, and coordination with federal authorities regarding nonprofit and tax-exempt status. Together, the actions reflect executive direction followed by enforcement activity under existing statutory authority.
Abbott’s CAIR Designation
In November 2025, Governor Abbott issued a proclamation designating the Muslim Brotherhood and the Council on American-Islamic Relations as foreign terrorist organizations and transnational criminal organizations under Texas law. The proclamation relied on provisions of the Texas Penal Code, the Texas Civil Practice and Remedies Code, and the Texas Property Code.
According to the proclamation, these statutes authorize civil and administrative enforcement actions when entities are identified as terrorist or transnational criminal organizations. Abbott cited federal investigations, court findings, and historical documentation involving Hamas and the Muslim Brotherhood as part of the basis for the designation.
The designation did not create new statutory authority. Instead, it invoked enforcement mechanisms already available under Texas law. As a result of the designation, entities identified as terrorist or transnational criminal organizations are prohibited from acquiring real property in Texas, and the Attorney General is authorized to pursue civil enforcement actions if attempts are made to acquire or hold property in violation of state law.
The designation itself is currently the subject of federal litigation. CAIR has challenged the proclamation and its legal effects, and the Office of the Attorney General is defending the governor’s authority to issue it. No final judicial determination has been issued to date.
Abbott Directs Paxton to Enforce Nonprofit Laws
In a letter dated January 28, 2026, Governor Abbott directed Attorney General Paxton to use his statutory authority to investigate CAIR’s nonprofit operations in Texas. Abbott stated that the Texas Attorney General is the only elected official charged with regulating nonprofits that may be violating state law.
The letter outlines the Attorney General’s authority to inspect nonprofit records, issue civil investigative demands, compel testimony, seek judicial forfeiture of nonprofit charters, and impose liens against property held by nonprofits found to be operating unlawfully. Abbott emphasized that these enforcement tools are already authorized under Texas law and have been used in prior cases.
In addition to referencing terrorism designations, Abbott cited discrepancies involving the registration and reporting status of several CAIR-affiliated entities. The letter notes inconsistencies between Internal Revenue Service filings and Texas Comptroller records, including entities that appear to operate in Texas without corresponding state or federal registration information. Abbott stated that these discrepancies raise questions regarding compliance with nonprofit requirements and warrant investigation.
Paxton Initiates Enforcement Actions
Following Abbott’s directive, Attorney General Paxton initiated investigations involving Cypress-Fairbanks Independent School District and the Grapevine-Colleyville Independent School District. The investigations relate to events associated with the Islamic Games of North America that were advertised as being sponsored by a CAIR chapter and scheduled to take place on public school property.
Paxton’s office has requested communications, contracts, and related documents between the school districts, the Islamic Games of North America, and CAIR or its affiliates. Public reporting has indicated that some of the events were later canceled or rescheduled. The investigations remain ongoing.
Paxton stated that Texas law prohibits public entities from materially supporting foreign terrorist organizations or their affiliates. The investigations are intended to determine whether the use of public school facilities or resources in connection with the events violated existing state law. These actions apply current restrictions governing the use of taxpayer-funded property and resources and do not involve changes to education policy or new regulatory standards.
Abbott’s Request for Federal Review of CAIR’s Tax-Exempt Status
In December 2025, Governor Abbott sent a letter to U.S. Treasury Secretary Scott Bessent requesting that the Treasury Department investigate CAIR and suspend its tax-exempt status as a 501(c)(3) nonprofit organization.
The letter cites Section 501(p) of the Internal Revenue Code, which requires suspension of tax-exempt status for organizations designated as terrorist entities or associated with such organizations under federal law. Abbott referenced federal court findings and executive actions involving the Muslim Brotherhood and Hamas in support of the request.
Abbott’s request seeks federal administrative review rather than criminal enforcement. Suspension of tax-exempt status would affect CAIR’s eligibility for federal nonprofit benefits and its ability to solicit tax-deductible donations. As of this writing, the U.S. Department of the Treasury has not publicly announced a determination regarding the request.
Attorney General Opinion Clarifies Enforcement Authority
A recent Attorney General opinion issued in response to a request from the Texas Comptroller addresses the scope of administrative authority to enforce compliance with “other relevant law” when administering taxpayer-funded programs. Although issued in a different policy context, the opinion confirms that state agencies may consider compliance with existing terrorism and foreign adversary laws when making eligibility determinations.
The opinion emphasizes that factual determinations are made by the administering agency and that the Attorney General’s role is limited to legal interpretation rather than fact-finding. The opinion does not address the merits of any specific entity’s eligibility or compliance. This clarification reflects a consistent interpretation of administrative enforcement authority across state government.
Litigation and Ongoing Judicial Review
CAIR has filed lawsuits in federal court challenging Governor Abbott’s designation and subsequent enforcement actions. The organization alleges violations of constitutional protections, including First Amendment rights.
The Office of the Attorney General is defending the governor in these cases. The litigation remains pending, and no final rulings have been issued regarding the legality of the designation or related enforcement actions.
Federal courts will determine whether the designation and enforcement actions comply with constitutional and statutory requirements. These rulings will clarify the scope of state authority to regulate nonprofits and restrict access to public institutions when terrorism statutes are implicated.
Current Status and Procedural Outlook
Governor Abbott has directed enforcement action against CAIR, and Attorney General Paxton has initiated investigations and administrative actions under existing law. These actions involve nonprofit oversight, public school compliance, and coordination with federal agencies.
At present, no final determinations have been issued regarding nonprofit forfeiture, suspension of tax-exempt status, or criminal liability. Investigations and litigation remain ongoing.
The resolution of these matters will determine the extent to which Texas may continue to apply terrorism and nonprofit statutes in this context and will provide guidance for future enforcement actions involving similarly situated organizations.
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