DHS said it made the decision following a report from the Middle East Forum (MEF), a pro-Israel group, which alleged that DHS had given $25 million to "terror-linked groups" between 2013 and 2023. According to DHS, it has already suspended the funds to 49 different projects based on this report.
The Council on American-Islamic Relations (CAIR) describes MEF as an "anti-Palestinian and anti-Muslim hate group" and its leader, Daniel Pipes, as "racist."
The foreign policy commentator was nominated to the board of the United States Institute of Peace by former President George W. Bush in 2003 despite a long history of anti-Muslim rhetoric.
This has included referring to Muslims as "brown-skinned peoples cooking strange foods and maintaining different standards of hygiene" and blaming the 1995 Oklahoma City bombing, which was committed by a US-born white supremacist, on Muslim "fundamentalists."
In 2004, after being nominated to the position, Pipes said he did "support the internment of Japanese Americans in World War II," and suggested it as a model for dealing with Muslims.
In the report, MEF described CAIR, which it says received $250,000 from FEMA, as a "Hamas-aligned" group. But the only evidence it cites is the organization's naming as an "unindicted co-conspirator" in the 2007 trial of the Holy Land Foundation for allegedly funnelling money to Hamas.
CAIR was never charged with a crime, but that case has nevertheless been used to tie it and many other Muslim nonprofits to terror groups with little to no evidence of wrongdoing.
MEF also singled out other organizations like the Islamic Society of Baltimore, merely because it was once "previously under FBI surveillance."
Others MEF singled out for their harsh rhetoric towards Israel. For instance, it described Michigan's Islamic Institute of Knowledge as an "outpost for Iran's revolutionary brand of Shi'a Islamism" because its leaders have allegedly "echoed Iranian regime rhetoric regarding Israel, including comparing Israel to the Nazis and blaming it for October 7."
It also suggested that other mosques and organizations have terrorist affiliations because leaders have family members who were, at some point, Iranian clerics or government officials.
According to DHS, merely "alleged" terrorist ties are enough for funding to be pulled, and that includes the allegations made by the MEF.
While DHS said it is conducting its own review to determine which groups to strip funding from, it told Fox News: "We take the results of the MEF report very seriously and are thankful for the work of conservative watchdog groups."
MEF previously told the New York Post that it is working with DHS to "rescind grants to extremist groups."
CAIR says the groups being targeted "were smeared as 'Hamas-aligned' by MEF because of their opposition to Israeli human rights abuses."
During his second term, Trump and congressional Republicans have aggressively targeted nonprofit organizations that criticize his policies, particularly those critical of Israel.
Trump has attempted to coerce universities, including Harvard, into cracking down on pro-Palestinian speech by students by threatening their nonprofit status.
In May, Republicans also snuck a provision into their giant reconciliation bill that would have given the treasury secretary unilateral authority to strip the nonprofit status of any organization he deemed to be supportive of a terrorist organization, which, to the Trump administration, often simply means voicing solidarity with Palestinians. However, that "nonprofit killer" measure was struck from the final version of the law.
This month, DHS updated its terms for providing grants to nonprofits. One new section now requires nonprofits to cooperate with Immigration and Customs Enforcement (ICE). Another requires them to swear off boycotts of Israel, which CAIR describes as "a political test targeting supporters of Palestinian rights."
"Our civil rights organization has no active federal grants that the Department could eliminate or cut," a CAIR spokesperson told Fox. "The government cannot ban American organizations from receiving federal grants based on their religious affiliation or their criticism of Israel's genocide in Gaza."
CAIR also condemned DHS Secretary Kristi Noem for "making decisions based on the ravings of the Middle East Forum, an Israel First hate website."