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Jason Smith orders IRS review after watchdog says CAIR‑CA hid $26M

A new watchdog report has put CAIR‑California in the hot seat and Washington is paying attention. Investigators say the state chapter of the Council on American‑Islamic Relations took in and hid millions in taxpayer grants. House Ways & Means Chairman Jason Smith has formally asked the IRS to review CAIR‑California’s tax‑exempt status. In plain English: the questions are real, and taxpayers deserve real answers.

Watchdog report and IRS referral

The Network Contagion Research Institute and the Intelligent Advocacy Network published a report that claims CAIR‑California received roughly $26–27 million in government grants since 2022. The watchdogs point to federal refugee legal‑services money, a “Stop‑the‑Hate” pot of state funds, and other grants. They say some awards — including about $7.2 million tied to Afghan legal services and some $2.6 million from Stop‑the‑Hate lines — were routed in ways that deserve scrutiny, and that paperwork on IRS forms omits key details like subgrants and lobbying activity. Those are strong allegations. Chairman Jason Smith has taken them seriously enough to refer the matter to the IRS for review.

Why this matters — politics and public safety

Here’s the contrast: Texas and Florida moved to label CAIR as a dangerous influence at the state level, while California under Governor Gavin Newsom has been more welcoming and has overseen programs that watchdogs say led to CAIR‑CA getting federal and state grant dollars. Supporters of CAIR call the claims politically motivated and urge caution. That’s fair — allegations need proof. But political motives don’t erase the need for clear, public accounting when millions of taxpayer dollars are involved.

What taxpayers should demand now

An IRS review could take time. So could any administrative checks by the Department of Justice, EOIR or California agencies that manage those grant programs. Until investigators finish, the right move is simple: pause questions, not payments. Californians should demand audits, complete disclosure of subgrants and contracts, and answers about who actually received services and how much. If the books are clean, show the receipts. If they’re not, act fast.

At the end of the day this is about one basic thing: public money and public trust. Governor Gavin Newsom and California officials can keep defending their grant choices, or they can show the documents and let the inspectors do their job. Taxpayers don’t care about bumper‑sticker politics. They care about their dollars being spent lawfully and wisely. If CAIR‑California has nothing to hide, a transparent audit will prove it. If not, those who signed the checks should explain why they let it happen on their watch.

Written by Staff Reports

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