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In a stunning escalation that has already sent shockwaves through Texas’ Muslim communities, Gov. Greg Abbott’s sudden order to investigate two Islamic organizations — followed by an unprecedented proclamation labeling them “terrorist organizations” — triggered an immediate lawsuit accusing him of defamation, constitutional violations, and state-sanctioned Islamophobia.
Within hours of Abbott’s announcement, the Council on American-Islamic Relations (CAIR) and the Muslim Legal Fund of America asked a federal court to stop what they say is a baseless, retaliatory, and discriminatory attempt to strip Muslims of their right to own property in Texas. Their lawsuit argues that Abbott’s sweeping designation “finds no basis in law or fact” and puts millions of Texas Muslims at direct risk.
Abbott’s directive also empowers the Department of Public Safety — working alongside FBI Joint Terrorism Task Forces — to begin criminal investigations into both CAIR and the Muslim Brotherhood, even though neither organization is listed as a terrorist group by the U.S. State Department.
Abbott’s move came just two days after he issued a proclamation designating the groups as “transnational criminal organizations,” a label usually reserved for cartels and foreign extremist networks. The designation immediately triggers a Texas land-ownership ban, preventing members or affiliates of the groups from purchasing or acquiring property in the state.
That, civil rights groups say, is exactly the point.
The lawsuit — naming Abbott and Attorney General Ken Paxton — argues the governor is attempting to use an anti-terror statute to police religious identity and political speech.
The proclamation “is defamatory and finds no basis in law or fact,” CAIR and the Muslim Legal Fund wrote.
They warn that Abbott’s order hands Paxton new authority to deny Muslims their constitutional rights, “creating an imminent risk of harm.”
CAIR, a long-established Muslim civil rights organization, blasted Abbott’s announcement.
“Although we are flattered by Greg Abbott’s obsession with our civil rights organization, his publicity stunt masquerading as a proclamation has no basis in fact or law,” CAIR said.
The group said Abbott’s claims rely on “debunked conspiracy theories and made-up quotes,” and vowed to challenge the designation if it becomes enforceable policy.
Abbott accused both organizations of “supporting terrorism across the globe” and “subverting Texas laws through violence, intimidation, and harassment.” He also said the investigation will target groups “who unlawfully impose Sharia law,” which he claims violates the Texas Constitution.
Sharia refers to a set of moral and faith-based principles Muslims follow — including prayer, fasting, charitable giving, and ethical conduct — not the substitution of American law.
Legal experts say Abbott’s framing raises serious constitutional alarms.
Emily Berman, a professor at the University of Houston Law Center, said the proclamation likely collides with the First Amendment and the 14th Amendment’s Equal Protection Clause.
“Is it about their religious views? Their viewpoints on the Israeli-Palestinian conflict?” she asked. “You can’t discriminate on someone’s viewpoint.”
She also questioned whether Texas has a legal process for appealing such designations, unlike the federal system — an ambiguity that could strengthen a legal challenge.
“This is in the sort of Islamophobic toolbox that Abbott is picking up,” said Habiba Noor, lecturer at Trinity University. She said the attempt to tie CAIR to the Muslim Brotherhood is a conspiracy theory resurfacing since the 1990s.
Noor noted that tensions spiked after controversy surrounding EPIC City, a proposed Islamic residential community near Dallas that faced intense pushback from opponents. Abbott signed a bill aimed at barring “Sharia compounds,” despite there being no evidence the development planned to operate under religious law.
For many Muslim Texans, Abbott’s latest move feels like an extension of that conflict — a message about who is welcome in the state, and who isn’t.
Interviews across Houston, Dallas, and San Antonio reveal growing fear among Texas Muslims who worry Abbott’s order goes beyond policy — and spills into daily life.
Parents say children are asking if they will be removed from their homes. College students report being questioned about their political views on campus. Mosque leaders say requests for security patrols have doubled.
Civil rights groups are warning that the governor’s proclamation risks normalizing suspicion toward Muslims at a time when hate-crime complaints have risen nationally.
“It puts a direct target on the backs of Muslims in Texas,” Houston resident Amatullah Contractor said. “It seeks to intimidate and silence an entire community.”
Others say the order is especially alarming because it appears to connect property rights — one of the most fundamental protections in American law — to religious identity.
“CAIR is literally here to help individuals,” said Houston resident Shayan Sajid, who has attended the Maryam Islamic Center for two decades. “There’s nothing there to be afraid of. Nothing tying them to violence. But now ordinary Muslims feel like we’re under a microscope.”
Advocates warn that the psychological impact may outlast any court battle.
The East Plano Islamic Center’s planned community — featuring homes, a faith-based school, a mosque, and retail — drew fierce opposition and multiple investigations despite complying with state housing laws.
The nonprofit managing it agreed to follow Texas Fair Housing Act guidelines. CAIR is not involved in the project, but its Dallas-Fort Worth office criticized Abbott’s involvement.
Noor said the attempt to connect CAIR to global extremism mirrors longstanding efforts to link Muslim civic organizations to foreign political movements.
“The tie to land goes back to this conflict over EPIC City,” she said. “It’s yet another move to deny Muslims the right to develop properties together as a community.”
State Rep. Cole Hefner, who sponsored the new law granting Abbott expanded property-ban powers, praised the governor’s action, calling it a tool to “stop extremist networks.”
CAIR’s lawsuit argues Abbott’s designation violates the First Amendment, Equal Protection, and exceeds Texas’s authority by intruding into federal national-security powers.
Civil-rights lawyers say the state lacks any formal legal process for labeling groups as terrorist organizations, making the proclamation vulnerable to constitutional challenge. The case now hinges on whether Texas can restrict property rights or launch criminal investigations based solely on a governor’s unilateral designation.
Scholars say Abbott’s proclamation may push Texas into legally murky territory.
Unlike the federal government, Texas lacks a formalized process for labeling an organization a terrorist entity. The state also has limited authority over national security matters, which are traditionally federal responsibilities.
Whether CAIR — or any other group — can appeal a state-level designation remains unclear.
Berman said CAIR could argue that Texas is overstepping into an exclusive federal domain.
That fight now moves to the courts.
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