Already, promoters behind what appears to be a plan for an Islamic-run development in Texas, hundreds of acres of Muslim housing, business and mosque interests, have been hit with complaints about violations of federal tax laws, civil rights laws, securities laws, and housing laws.
Now the state is suing the organization, the East Plano Islamic Center, for violating open meetings laws.
Texas Attorney General Ken Paxton confirmed that he’s filed an action against EPIC City affiliates for violating the Texas Open Meetings Act “in an attempted illegal takeover of a municipal utility district.”
He identified it as the Double R Municipal Utility District No. 2A in Hunt and Collins counties.
Those pursuing their agenda allegedly violated the open meetings requirements in order to “secretly take over and expand a political subdivision to facilitate” EPIC, he said.
A meeting was orchestrated in a “remote field” for officials to fire the district’s legal counsel, take “resignations” from all board members, appoint a new board and try to annex more than 400 acres.
But the meeting failed in several respects, including a failure to provide public notice and public access and a misrepresentation of the “true scope” of the plans.
“EPIC city developers have tried to evade the law in any way possible, but I will fight to uncover and stop any illegal scheme that seeks to advance their projects,” Paxton said, “My office has already proven that those individuals were unlawfully appointed to this MUD. Now we are using every legal tool available to hold them accountable, uphold transparency, and force compliance with Texas Open Meetings Act requirements.”
BREAKING: I’m suing EPIC City affiliates for violating the Texas Open Meetings Act in an attempted illegal takeover of a municipal utility district. pic.twitter.com/aVaXpz8XUZ
— Attorney General Ken Paxton (@KenPaxtonTX) May 4, 2026
Not the Bee reported the project has been in the courts for months already.
The report said the issue is “whether or not an all Muslim town, with Muslim schools, mosques, and Islamic community centers is legally allowable.”
Just days earlier, a court ordered the Texas Workforce Commission to work with the developer of the Muslim-oriented community.
Opponents have included Gov. Greg Abbott, Paxton, Sen. John Cornyn and others.
Texas has ALREADY appealed & halted this flawed ruling.
The Meadow (Epic City) is also subject to other legal action by the state.
And, there are active investigations by State agencies and by the federal government.
This development will never see the light of day. https://t.co/d079XtbjYO
— Greg Abbott (@GregAbbott_TX) April 30, 2026
It was only days ago a report confirmed Rep. Keith Self was calling for additional federal probes after a watchdog group raised legal and constitutional concerns about a proposed Muslim-centered development in his district.
The Oversight Project, a watchdog group, alleges EPIC is violating federal law in spearheading the development of “EPIC City,” a planned 400-acre community outside Dallas, Texas. The development near Josephine, Texas—also referred to as “The Meadow”—would include housing, a mosque, schools, and commercial businesses.
“The Oversight Project’s bombshell report indicates that the East Plano Islamic Center (EPIC) is violating federal tax law, civil rights law, securities law, and housing law. If true, EPIC should have their 501(c)(3) tax-exempt status revoked,” Self, a Texas Republican, said.
The Justice Department dropped an earlier fair housing investigation into the community, and EPIC has repeatedly said it is in full compliance with the law. The U.S. Department of Housing and Urban Development launched a separate probe into possible housing discrimination.
“In addition to the ongoing Housing and Urban Development (HUD) investigation, I am calling on the Internal Revenue Service (IRS) and Department of Justice (DOJ) to launch additional probes into EPIC and its affiliates for violating federal law. The rule of law must be upheld,” Self said.
The Oversight Project asserts its findings raise issues regarding EPIC’s tax-exempt status since a nonprofit created a for-profit entity known as Community Capital Partners, which functions as the project’s developer.
“This explicit financial arrangement—where a nonprofit mosque (i.e., EPIC) has created a for-profit entity (i.e., ERP and/or CCP) that exists solely to funnel all of its profits back to the nonprofit mosque—raises serious constitutional, tax, and practical concerns, especially given that it is geared toward the development of a Sharia-compliant community in EPIC City,” the report says.
“The Oversight Project’s legal analysis of this arrangement, consisting of a straightforward application of the relevant bodies of law to our examination of public records returns, finds that EPIC is likely in violation of its 501(c)(3) federal tax-exempt status,” the report continues.
Paxton already has accused the development of violating state securities laws and illegally creating a utility district to support the Islamic plan.
