WASHINGTON, D.C. – Islamic Relief USA (IRUSA), an American-based nonprofit that has been under investigation by the Ways and Means Committee for its affiliation with Islamic Relief Worldwide (IRW), an organization with suspected ties to terrorism, recently filed a lawsuit against IRW in the Southern District of New York regarding its attempts to sever their relationship with them. IRUSA’s lawsuit cites the Committee’s multiple referrals to the Internal Revenue Service (IRS) for investigation of its tax-exempt status. IRW is an organization with connections to terrorist entities, including Hamas, and a history of antisemitic behavior.
Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement:
“I am committed to ensuring those who enjoy generous benefits under our tax code are not funding, affiliated with, or participating in activities that violate their 501(c)(3) status. IRUSA’s decision to sever financial ties is a significant response that would never come about but for our Committee’s oversight of the 501(c) sector. I hope other organizations that have been identified as part of our investigation will take note of this decision and take appropriate action to ensure they are not potentially violating their tax-advantaged status. The Ways and Means Committee will not cease our efforts to expose wrongdoing in our tax-exempt sector to ensure American taxpayers are not subsidizing illegal activities.”
In September 2024, Chairman Smith sent letters to the Biden IRS referring multiple organizations to the agency for investigation and possible revocation of tax-exempt status. This included IRUSA due to its affiliation with IRW and how their financial relationship allegedly provided support for terrorist activities. The IRUSA letter notes that “in 2022, the largest contribution to IRW’s income, £67 million, was provided by IRUSA. IRUSA was the largest contributor, accounting for 29 percent of IRW’s total income in 2022. In addition, IRUSA contributed £54.3 million to IRW in 2021, which accounted for approximately 44 percent of IRW’s income in 2021.”
In October 2025, Chairman Smith referred IRUSA to the Trump IRS for possible revocation of tax-exempt status.
Concerns with IRW’s connections to terrorism go back over a decade – including:
- Allegations by Israel’s Defense Minister in 2014 that IRW was funneling money to Hamas.
- Reports in 2016 that the Federal Bureau of Investigation, IRS, and Office of Personnel Management had initiated a criminal case related to IRW.
- The U.S. State Department’s decision in 2020 to formerly cut ties with IRW due to repeated examples of antisemitism perpetrated by the organization’s leadership.
- Major financial institutions like HSBC, Credit Suisse, and UBS cut their affiliations with IRW over concerns of funding ending up in the hands of terrorist groups.
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