U.S. District Judge Audrey Collins of the Central District of California issued an opinion reversing an earlier ruling from November 2006 that portions of the Executive Order used to designate organizations as supporters of terrorism are unconstitutionally vague. Judge Collins left open the possibility that groups or individuals with ties to the designated groups could challenge the designations separately. The issue was reconsidered at the government's request, and determined that American supporters of Kurdish and Tamil separatist groups do not have standing to challenge the terrorist designations. The opinion states; " Plaintiffs' fear of designation by the President is ultimately based on speculation." Read the New York Sun article here.

On April 25 the Washington Post and Associated Press reported that the Pentagon's new undersecretary of defense for intelligence, James R. Clapper, has made an intelligent recommedation: shut down the TALON program. It was meant to collect information on possible threats to U.S. military installations, but has been used to spy on peace groups and anti-military protesters. The Post article said:

In answer to questions before his confirmation hearing, Clapper, who has worked for 43 years within military intelligence, said: "The history of the intelligence community is replete with instances of abuse of civil liberties -- well intended, but abuse nonetheless." He said it is "important that the proper balance be struck between the counterintelligence mission, on one hand, and the protection of civil liberties, on the other."

Defense Secretary Robert Gates must make the final decision on the fate of the TALON program.

In May 2006 a Treasury Department official told the American Bar Association's Exempt Organizations Committee that it was developing a "risk matrix" for charities to help determine the threat of diversion of charitable funds to terrorist organizations. In response, a group of nonprofits, including OMB Watch, called on Treasury to seek public comment on the risk matrix.

There has been no response or announcement from Treasury. However, a sharp lawyer that represents nonprofits recently discovered that Treasury has posted a risk matrix on its website. The OFAC Risk Matrix for the Charitable Sector was posted in March 2007. Treasury's introductory statement says it was done to assist charities, but it is hard to see how it can be helpful if there has been no input from the nonprofit sector and Treasury has not bothered to announce its posting.