Justice Dept. drops probe of Muslim-centered community near Dallas

The U.S. Department of Justice has closed a federal civil rights investigation into a Muslim-centered planned community around one of the state’s largest mosques near Dallas without filing any charges or lawsuits.

The Justice Department had opened the investigation after U.S. Sen. John Cornyn called for it, arguing that the development could discriminate against Christian and Jews.

The developers of the proposed Epic City community tied to the East Plano Islamic Center, have complained they are being bullied by multiple federal and state investigations because they are Muslim. Epic City would be near the community of Josephine, about 30 miles northeast of Dallas.

A June 13 Justice Department letter to Community Capital Partners, the group developing the project, noted the department is closing the investigation.

“CCP has affirmed that all will be welcome in any future development,” the letter said. The group wrote that they plan to revise and develop marketing materials to reinforce that message.

A Justice Department spokesperson declined to comment further. The letter was first reported Wednesday by the Dallas Morning News.

Community Capital Partners had said the development would adhere to the Fair Housing Act and any other state and federal guidelines, and that the community would be open to members of all religions.

The federal investigation had escalated pressure on the proposed Epic City, which has faced steady criticism and multiple investigations. Republican Gov. Greg Abbott and other GOP state officials have claimed the group is trying to create a community that excludes non-Muslims and would impose Islamic law on residents.

The developers have said they are not seeking to impose religion on anyone, and that the community would follow state and federal law.

Among its chief critics has been the state’s hard-right Attorney General Ken Paxton, who is challenging Cornyn for his Senate seat in 2026.

Dan Cogdell, an attorney for Epic City who defended Paxton in his 2023 impeachment trial when he was acquitted by the state Senate, noted how quickly federal officials had wrapped up their probe.

None of the investigations would be happening if the community was planned around a Christian church or Jewish temple, Cogdell said.

“The false accusations that have been swirling around the development were based solely on misinformation, lies and false rumors,” Cogdell said. “Frankly, the politicians that have repeated them without ever bothering to look at any fact should be embarrassed.”

The state investigations include whether the development is violating financial and fair housing laws and whether funeral practices at the mosque were done legally. The status of those investigations remained unclear Wednesday. Cogdell said the developers will cooperate with anyone who asks.

The Council on American-Islamic Relations has criticized the federal and state probes as bullying the Muslim community and a violation of constitutionally protected religious expression.

“We welcome the dropping of this investigation and hope the DOJ’s actions send a clear message to the governor and other officials in Texas that they should similarly drop their Islamophobic witch hunt targeting Muslims in that state,” said CAIR National Executive Director Nihad Awad.

Plans for the mixed-used development include more than 1,000 homes and apartments, a faith-based school for kindergarten through 12th grade, a community college, assisted living for older residents, and athletics fields.

The project may take years to finish. The developers have said they will not even start the initial permitting process for several more months.