The Department of Health and Human Services formally notified California and Washington on June 9 that it is investigating the Council on American-Islamic Relations over alleged links to Hamas and the suspected misuse of millions in federal Afghan resettlement dollars.
Letters signed by HHS Assistant Secretary for Financial Resources Gustav Chiarello warn that the investigation could result in CAIR's "suspension and proposed debarment" from all federal programs, a move that would cut off the organization from every federal contract and grant across the government. The probe targets both the money trail and the organization's alleged connections to designated terrorist groups.
The money at issue runs into the tens of millions. Since 2022, HHS has sub-granted more than $15 million to CAIR through the California Department of Social Services for Afghan resettlement programs, according to the agency. The New York Post, which first reported the probe, put the broader total under scrutiny at roughly $30 million, accounting for funds routed through both California and Washington state.
Investigators have already zeroed in on one specific alleged diversion. CAIR-California received more than $7.2 million through the Afghan Legal Services Project, a federal Office of Refugee Resettlement program, to provide legal assistance to Afghan nationals who arrived following the 2021 Kabul withdrawal. Federal records cited in the HHS letters show that CAIR-CA allegedly redirected at least $3.6 million of those dollars to itself and affiliated CAIR chapters, in apparent violation of the grant terms. The organization allegedly failed to deliver the legal services it was contracted to provide.
The Chiarello letters go beyond the money trail. They state that HHS has been informed "there may be connections between CAIR and the Muslim Brotherhood and its Palestinian branch, Hamas." Federal regulations bar the department from conducting business with entities tied to designated terrorist organizations. A separate Justice Department investigation into suspected federal-funds misuse by CAIR has been active for more than a year, according to reporting by Just the News and the Daily Signal.
CAIR disputes the allegations at every level. The organization, which describes itself as a Muslim civil rights group, has sent a letter to a Senate subcommittee defending its Afghan resettlement work and published formal rebuttals to claims about extremist ties, characterizing such accusations as part of a years-long "disinformation and lawfare campaign." CAIR did not immediately respond to a request for comment on the new HHS letters.
The HHS probe did not materialize without a push. Rep. Chip Roy of Texas sent a formal letter to HHS Secretary Robert F. Kennedy Jr. on April 27, demanding the immediate suspension of all CAIR funding and the initiation of debarment proceedings. Roy, citing the active DOJ investigation and the documented grant violations, argued that continued payments to CAIR "cannot be justified under any standard of responsible government stewardship," according to his official press release. The letter carried signatures from other Republican members, and Just the News confirmed the congressional delegation's formal call for action.
Questions about what California officials knew, and when, add another dimension to the investigation. City Journal and Roy's letter both reported that the California Department of Social Services approved an additional $23 million award to CAIR as recently as September 2025, even as federal investigators were already examining prior disbursements for irregularities. Whether state officials had access to those federal concerns before authorizing the September award is one of the questions HHS has now directed to Governor Gavin Newsom's office.
The Stakes of a Potential Debarment
A formal suspension would immediately cut CAIR off from new federal contracts and grants while the full debarment process runs its course. Debarment, once finalized, imposes a long-term bar from all federal programs across every agency, not just HHS. The consequences for an organization that has drawn tens of millions in government funding over the past four years would be significant and immediate.
The full national picture of federal dollars flowing to CAIR and its affiliates remains incomplete. Roy's letter addressed California specifically, but watchdog groups and lawmakers have noted that CAIR chapters operate across multiple states and have tapped funding through programs well beyond HHS. Congress has pressed the administration to produce a comprehensive accounting of what federal agencies have paid CAIR nationwide since 2021, a figure that has not yet been publicly totaled.
CAIR has 30 days to respond to the HHS letters under standard federal administrative process. Secretary Kennedy has not yet publicly announced whether he will move to formal suspension or allow the investigation additional time. The response deadline and the parallel DOJ inquiry are the two threads to watch as this case moves toward a resolution that could carry consequences far beyond one organization's funding status.
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