H.R. 11028: Designating North American Islamic Trust Act of 2026

This bill would require the Treasury Department, within 30 days of enactment, to designate the North American Islamic Trust (NAIT) and its subsidiaries, affiliates, and successors as a Specially Designated Global Terrorist under Executive Order 13224. That designation would block their property and restrict transactions involving them under U.S. sanctions rules.

What entities would be covered

The bill specifically says the designation would include certain related entities, including:

• Allied Asset Advisors, Inc., and funds it advises or sponsors, including the Iman Fund
• American Trust Publications and Islamic Book Service
• The Islamic Centers Cooperative Fund and any similar pooled fund, loan program, or waqf program administered by NAIT
• Any entity owned or controlled by, or acting for or on behalf of, NAIT

It also says a property, trust, or waqf arrangement with NAIT alone would not automatically make an entity a subsidiary or affiliate.

Limits on undoing the designation

Once NAIT is designated, Treasury could not remove it from the sanctions list unless it first gives Congress a 30-day notice with a certification and detailed explanation that the entity no longer meets the designation criteria.

Effects on houses of worship and other beneficiary institutions

The bill includes protections for mosques, Islamic centers, schools, cemeteries, and other beneficiary institutions that use property held in NAIT’s name. Treasury would have to issue a general license within 90 days allowing those institutions to continue to:

• Possess and use the property
• Maintain and insure it
• Conduct religious, educational, and charitable activities there
• Pay ordinary operating costs such as taxes and utilities

The bill also sets up a process, to be created within one year, for NAIT’s interest in covered property to be transferred either to the beneficiary institution or to a new trustee that is not controlled by a designated person. If a property has multiple beneficiary institutions, the process would have to address how they choose the transferee and resolve disputes.

Beneficiary institutions would then have 180 days after the process is published to either complete the transfer or end any trust relationship with NAIT. Treasury could extend that deadline in 180-day increments for good cause, such as refusal by NAIT to sign the transfer papers, litigation, or title problems.

The bill says the sanctions should not be used to prevent people who are not designated persons from worshiping at the affected properties, and it should not be used to close a house of worship operated by a beneficiary institution.

Investment interests

Treasury would also have to issue a license allowing U.S. persons who are not designated persons to redeem or transfer shares in investment companies advised or sponsored by a NAIT subsidiary, so long as the transfer does not pass value to NAIT.

Reporting requirements

Within 30 days, Treasury and State, with the Attorney General, would have to report to Congress on NAIT, including:

• Conduct relevant to the sanctions designation
• Steps taken to implement the bill
• An inventory of U.S. real estate in which NAIT holds an interest, along with the beneficiary institution and assessed value
• Any funds NAIT or its subsidiaries received from foreign governments, foreign government-controlled institutions, or foreign persons since January 1, 1973, if that information can be determined
• Transactions since November 18, 2025, in which NAIT acquired an interest in real estate from, or consent rights over, property held by a person subject to a federal or state designation

The unclassified portion of that report would have to be posted publicly on Treasury’s website within 7 days after submission.

Relevant Companies

• None found