DHS remains unfunded as Iran sleeper cell fears spike nationwide amid security warnings

03 Mar 2026 By foxnews

Concerns about potential Iran-linked sleeper cells are rising as the Department of Homeland Security remains unfunded and Tehran and its proxies threaten retaliation over U.S.-Israeli strikes that American officials say killed nearly 50 top Iranian leaders.

DHS, which oversees many of the federal government's front-line national security offices, is currently under a partial shutdown after Democrat lawmakers let funding lapse on Feb. 14 amid a standoff over the Trump administration's immigration enforcement policies. The partial shutdown has affected non-essential operations, including administrative offices, as well as delayed paychecks for thousands of DHS employees.

The sleeper cell concerns came into full focus over the weekend when authorities say a Senegalese man opened fire at patrons of an Austin, Texas, bar while wearing a sweatshirt that read "Property of Allah."

Ndiaga Diagne, 53, of Pflugerville, who was also found with an undershirt featuring the Iranian flag, reportedly entered the U.S. during the Clinton administration on a B-2 tourist visa. He became a naturalized citizen during the Obama administration.

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A San Antonio FBI official said the incident is being investigated for a "potential nexus to terrorism."

DHS Secretary Kristi Noem told Fox News Digital on Monday that she is in "direct coordination with our federal intelligence and law enforcement partners as we continue to closely monitor and thwart any potential threats to the homeland," when asked about any increased threat from sleeper cells in the U.S.

Fox News also learned Monday that a DHS memo was sent out over the weekend to various law enforcement agencies nationwide warning of potential cyberattacks and lone wolf physical attacks as a result of the U.S.-Israel bombing in Iran.

The memo offered no specific knowledge of individual attacks but warned of lower-level cyberattacks or other violence.

DHS, meanwhile, remains largely unfunded due to an approximately month-long shutdown brought on by Democratic lawmakers' refusal to approve new agency funding over the Trump administration's crackdown on illegal immigration, most notably in Minneapolis.

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"It is outrageous that they continue to stall on this because their political ideologies disagree with keeping Americans safe," said Sen. Joni Ernst, R-Iowa.

Former House Speaker Kevin McCarthy, R-Calif., warned that if there is "some type of attack within America, it is going to be on the Democrats," pointing to the otherwise porous Mexican border under previous administrations.

The head of cyberdefense agency Cybersecurity and Infrastructure Security Agency (CISA) - which falls under DHS - recently warned that a majority of its workforce would be furloughed as the shutdown drags on.

"When the government shuts down, cyberthreats do not," CISA Director Madhu Gottumukkala told lawmakers in February, according to NextGov.

Gottumukkala, who served as South Dakota State Chief Information Officer under then-Gov. Noem, said the agency would only be able to focus on "anything that is an immediate need and an imminent threat," versus investigating or searching for new potential issues.

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Sen. Ted Cruz, a Republican from Texas where the first potential sleeper attack occurred, told Fox News on Monday that he has been in touch with FBI Director Kash Patel and Austin Democratic Mayor Kirk Watson about the incident.

"They're still investigating this, but it appears on the face of it to be terrorism," he said.

"The threats of terrorism are higher right now. Our forces are on alert because we are actively taking out the Iranian leadership in the Ayatollah," Cruz added, calling it "shocking" that Democrats continue to hold-up DHS funding at such a perilous time.

Sen. Tom Cotton, R-Ark., added on "America's Newsroom" that previous administrations set the groundwork for sleeper cell vulnerabilities.

"Unfortunately, we had a wide-open border for four years under Joe Biden. We have no idea who may have gotten into the country during those four years. I don't want to comment specifically on what happened in Austin until all the facts are known, but I did speak with Kash Patel yesterday, and I can tell you that the FBI is taking every potential threat around the nation very seriously," Cotton said.

"This is by the way another very compelling reason that we need to fund the Department of Homeland Security immediately," he said, noting the shutdown is dragging on into a "war against the world's worst state-sponsor of terrorism."

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One top Democrat did appear to reference Iran's role as such.

Pennsylvania Sen. John Fetterman called the U.S.-Israeli offensive a "noble pursuit" - while Rep. Rashida Tlaib, D-Mich., claimed "both the U.S. and genocidal Israel do[n't] care about the laws."

The House is reportedly set to attempt a vote on DHS funding sometime this week.

European and American security officials speaking on anonymity in the days leading up to the Feb. 28 strike told the New York Times no specific sleeper plots had been uncovered but that there has been an increase in "chatter" among intercepted communications.

Rhode Island Sen. Jack Reed, the top Democrat on the Senate Armed Services Committee, said in a statement that a strike on Iran would risk igniting a wider war, endangering U.S. forces and destabilizing global markets.

"Before any military action is considered, President Trump must come before the American people, explain why any conflict would be necessary, be honest about the risks and costs and present a clear strategy with a defined endgame," Reed said.

Meanwhile, Texas Gov. Greg Abbott told Fox Business that sleeper cell threats need to be taken seriously after the Austin attack.

And in New York City, home to the largest Jewish population outside Israel, the NYPD announced "enhanced high-visibility patrols" following the Iran strikes.

NYPD's top counterterrorism deputy Rebecca Weiner told ABC-7 the department is "looking really carefully at any threats and following up on leads and making sure that we're staying ahead of any threat that might materialize here in our city."

A student group at Columbia University in Morningside Heights reportedly posted "death to America" after news of Iranian dictator Ali Hosseini Khamenei's death, while Iranian-Americans celebrated in the streets over the 86-year-old ayatollah's demise.

Fox News' David Spunt contributed to this report.