Justice Department Clears Texas Muslim Community Project After Federal Probe, as State Investigations Persist
The U.S. Department of Justice has quietly closed its civil rights investigation into EPIC City, a controversial Muslim-centered housing development near Dallas, Texas, concluding that the project's developers have committed to complying with federal fair housing regulations. The federal probe, which began in May 2025 at the request of Senator John Cornyn, ended without any charges being filed against the East Plano Islamic Center or its development partners.
The closure marks a significant development in a months-long controversy that has divided Texas politics and sparked intense debate over religious freedom, community planning, and discrimination. While the federal investigation has concluded, the proposed 402-acre development continues to face multiple state-level investigations initiated by Republican Governor Greg Abbott and Attorney General Ken Paxton.
The Vision Behind EPIC City
EPIC City emerged from the East Plano Islamic Center's need to accommodate a growing Muslim population in North Texas. The ambitious project, planned for unincorporated areas of Collin and Hunt counties near Josephine, would feature more than 1,000 homes, a mosque, a K-12 faith-based school, a community college, senior housing, commercial spaces, and recreational facilities.
"An inclusive community, one in which people of every background, faith, and culture can live together in harmony."
— Imran Chaudhary, President of Community Capital Partners, describing the project's vision
The development is being managed through Community Capital Partners, a for-profit entity established by the mosque, with all profits to be reinvested in the East Plano Islamic Center—the first 450 plots sold out within days of their announcement, demonstrating strong interest from potential residents.
Project representatives have consistently emphasized the development's inclusive nature. At a Collin County Commissioners Court meeting in March, planner Erin Ragsdale stated, "Anybody who wants to buy a piece of land in this proposed master plan community can buy one. To build a house, to open a business, to build a school, to build a church, it is open to everyone, and their vision is to create an inclusive community for everyone".
Political Firestorm Erupts
The project quickly attracted intense scrutiny from Texas Republican leaders, who raised allegations that EPIC City could violate state and federal laws and foster an exclusively Muslim enclave. Governor Greg Abbott emerged as the most vocal critic, repeatedly asserting on social media that "Sharia law is not welcome in Texas" and warning against the creation of "Sharia cities" or "no-go zones".
"The State of Texas will enforce its laws and protect our communities from unlawful actions or threats posed by EPIC or its affiliates."
— Governor Greg Abbott, announcing state investigations into the project
Abbott directed multiple state agencies to investigate EPIC and its affiliates, including the Texas Rangers, the Texas Workforce Commission, the Texas State Securities Board, and the Texas Funeral Service Commission. The investigations encompassed potential violations ranging from improper permitting to alleged discrimination and financial misconduct.
Attorney General Ken Paxton expanded his investigation in April, launching a criminal probe and demanding documents from local city officials in Plano, Richardson, Wylie, and Josephine. "If any local official is supporting or communicating with a real estate development that is under investigation for potential violations of state law, then we must be made aware of exactly what's being communicated," Paxton said in a statement.
Federal Investigation Launched
The controversy escalated to the federal level when Senator John Cornyn requested a Department of Justice investigation in April 2025. Cornyn, who is facing a challenging Republican primary against Attorney General Paxton, cited concerns about potential religious discrimination against Christians and Jews.
"Religious discrimination and Sharia Law have no place in Texas. Any breaches of federal law must be promptly prosecuted."
— Senator John Cornyn, announcing his request for a federal investigation
The Justice Department confirmed the opening of its civil rights investigation in May 2025, following Cornyn's formal request to Attorney General Pam Bondi and Assistant Attorney General for Civil Rights Harmeet Dhillon.
Developers Push Back Against Allegations
Throughout the controversy, EPIC City's developers and their legal team have categorically denied all allegations of wrongdoing. Dan Cogdell, a high-profile Texas attorney representing the East Plano Islamic Center, has been particularly vocal in defending the project.
"The idea that we're going to invoke Sharia law or any of that nonsense is total bulls***. Quit tweeting lies, false information, and nonsense because my clients right now, what they are doing is they are suffering from essentially gubernatorial hate speech."
— Dan Cogdell, attorney for EPIC City developers, at a press conference
Cogdell, who previously represented Attorney General Ken Paxton during his 2023 impeachment trial, has characterized the state's actions as "racial profiling" and politically motivated harassment. He emphasized that the project remains in the planning stages, with no construction having begun.
DOJ Investigation Concludes
The Justice Department's investigation concluded on June 25, 2025, with Assistant Attorney General Harmeet K. Dhillon writing to Community Capital Partners that the agency was closing its probe. In the letter, Dhillon noted that the developers had "affirmed that all will be welcome in any future development" and committed to revising marketing materials to reinforce this message.
"CCP has affirmed that all will be welcome in any future development, and that you plan to revise and develop marketing materials to reinforce that message consistent with your obligations under the Fair Housing Act. Based on this information, the Department is closing its investigation at this time."
— Assistant Attorney General Harmeet K. Dhillon, in a letter to Community Capital Partners
The closure appears to place the Trump administration at odds with Texas state officials regarding the project's legality. A Justice Department spokesperson declined to provide additional comments beyond the letter.
Community Reactions and Civil Rights Concerns
The controversy has sparked significant debate within Muslim communities and among civil rights advocates. The Council on American-Islamic Relations (CAIR) has been particularly critical of the state investigations, describing them as discriminatory and inflammatory.
"Elected officials should respect the Constitution and serve all state residents instead of abusing their authority to discriminate against Muslims."
— CAIR National Executive Director Nihad Awad, welcoming the DOJ's decision
CAIR has documented a surge in Islamophobic incidents related to the controversy, including hate calls, threats, and the public exposure of community leaders' addresses. Mustafaa Carroll, executive director of CAIR's Texas chapter, told Newsweek that Abbott and Paxton have spread "hateful misinformation" and "exacerbated tensions rather than alleviating them".
The Southern Poverty Law Center has characterized anti-Sharia legislation as "one of the most successful far-right conspiracies to achieve mainstream viability" in the United States, providing broader context for the opposition to EPIC City.
Political Implications and Primary Battle
The EPIC City controversy has become a central issue in the Republican primary for the U.S. Senate seat currently held by John Cornyn, who faces a challenge from Ken Paxton. Both candidates have used the project to appeal to conservative voters, each trying to demonstrate their conservative credentials.
"This primary will be a battle about who can be more Republican, who can be more conservative."
— Brandon Rottinghaus, University of Houston political science professor
Rottinghaus described the race as "one of the toughest Republican primaries in Texas politics' history," with both candidates seeking to outflank each other on conservative issues. The EPIC City controversy has provided both Cornyn and Paxton with an opportunity to appeal to their base while positioning themselves as defenders of Texas values.
Ongoing State Investigations
Despite the closure of the federal investigation, EPIC City continues to face five state-level investigations initiated by Governor Abbott and Attorney General Paxton. These probes include allegations that the project could discriminate against non-Muslims in violation of the Texas Fair Housing Act, cause potential financial harm to investors, violate Texas consumer protection laws, and operate illegal funeral services.
As of late May 2025, all construction on EPIC City has been halted by order of Governor Abbott, who has said the project is subject to "a half dozen investigations." However, project representatives maintain that construction was never scheduled to begin shortly, with the development still years away from breaking ground.
The Texas Funeral Service Commission issued a cease-and-desist order regarding funeral services allegedly conducted at the mosque, which EPIC has since halted while maintaining its commitment to comply with all applicable laws.
Legal and Constitutional Questions
The EPIC City controversy has raised broader questions about religious freedom, fair housing, and the limits of government authority in regulating faith-based community development. Legal experts have noted that the allegations against the project lack concrete evidence, with critics relying primarily on speculation about the developers' intentions.
"EPIC has committed no illegal acts, and we will fully cooperate with any investigations."
— Dan Cogdell, urging officials to focus on "real issues rather than getting entangled in fictional ones"
The project's supporters argue that the intense scrutiny represents religious discrimination and violates constitutional protections for freedom of religion and association. They point to the lack of any actual construction or concrete evidence of discriminatory practices as proof that the investigations are politically motivated.
Community Impact and Resilience
The controversy has taken a significant toll on members of the Muslim community in North Texas, who have faced increased harassment and threats as a result of the political attention. Despite the challenges, community leaders have called for dialogue and understanding.
"If you have questions about our faith, come to us, sit with us, and we'll provide answers."
— Imam Bashir, calling for dialogue amid the backlash
The East Plano Islamic Center has continued to serve its growing congregation throughout the controversy, with many members living within walking distance of the mosque in a neighborhood that already features Arabic lettering on homes, halal grocery stores, and Middle Eastern businesses.
Unresolved Questions
As Texas continues to grow and diversify, the EPIC City controversy stands as a significant test case for how the state navigates questions of inclusion, religious liberty, and community identity. The outcome of the ongoing state investigations and the broader public debate may have far-reaching implications for religious freedom and community planning across the United States.
The Justice Department's decision to close its investigation represents a victory for the project's developers; however, the ongoing state-level probes ensure that EPIC City will remain in the spotlight. With construction still years away and legal challenges ongoing, the ultimate fate of this ambitious community development remains uncertain.
The controversy has highlighted deep divisions within Texas over demographic change, religious accommodation, and the role of faith-based communities in local development. As the Republican primary battle between Cornyn and Paxton intensifies, EPIC City is likely to remain a focal point in Texas politics, serving as a symbol of broader national debates over immigration, religious freedom, and cultural shifts in America.
The resolution of these investigations will be closely watched by civil rights advocates, religious communities, and political observers as an indicator of how religious minorities fare in an increasingly polarized political environment. For now, the East Plano Islamic Center and its supporters continue to advocate for their vision of an inclusive community, while facing ongoing scrutiny from state officials determined to prevent what they characterize as a threat to Texas values and laws.