Texas AG Sues Islamic School Over 'TexAM' Name and Unauthorized Degrees

2 min readSources: Courthouse News

Texas AG Ken Paxton filed suit against Texas American Muslim University for unauthorized operations and deceptive naming.

Why it matters: The case raises key issues for higher education and legal sectors, spotlighting Texas' enforcement on academic accreditation and naming rights. Regulatory scrutiny may increase for new or unaccredited institutions.

  • Paxton's May 18 lawsuit alleges TexAM operated without state authorization and used a name similar to Texas A&M.
  • The school solicited students and advertised degree programs despite lacking state approval.
  • TexAM's corporate charter was forfeited in February 2026 and remains forfeited.
  • Paxton seeks injunctive relief and civil penalties exceeding $1 million.

The Texas Attorney General’s office filed a lawsuit on May 18, 2026, accusing Texas American Muslim University (TexAM) of illegally operating as a university and using a name closely resembling Texas A&M University.

  • According to the lawsuit, TexAM advertised bachelor's and master's programs, promoted a physical campus in Richardson, and recruited students online and internationally—despite lacking a certificate of authority from the Texas Higher Education Coordinating Board.
  • The board issued a cease-and-desist letter to TexAM on May 6, 2026, formally prohibiting it from offering degrees.
  • The Texas A&M University System also issued a cease-and-desist letter over the similarity in name and branding, alleging the risk of public confusion regarding an affiliation.

Attorney General Paxton criticized the school for “repeatedly disregarding Texas law, misrepresenting its authority to grant degrees, and risk[ing] deceiving students about its legitimacy.” The legal action names three individuals associated with TexAM: Shahid A. Bajwa, Bilal Piracha, and Arsalan Shahzad.

TexAM’s nonprofit corporate charter was forfeited in February 2026. The state seeks to halt all operations, injunctive relief, and over $1 million in civil penalties for violating Texas education and deceptive trade laws.

TexAM founder Shahid A. Bajwa stated the university ceased classes as of May 11, in response to the regulators’ cease-and-desist order: “We are not operating as a university and not offering degree courses.”

For legal and education professionals, this action underscores heightened scrutiny on new institutions, naming rights, and potential student misrepresentation in Texas' higher education market.

By the numbers:

  • May 6, 2026 — Date cease-and-desist letter sent by education board to TexAM.
  • February 2026 — TexAM's nonprofit charter was forfeited.
  • $1M+ — Civil penalties sought by Texas Attorney General.

Yes, but: Details on how many students were affected or whether any degrees were conferred remain unclear.