The federal government is seeking to recover nearly $100,000 in public funding from a Toronto-based Palestinian advocacy group after officials flagged a series of social media posts they say undermine the conditions of the grant.Blacklock's Reporter says the Department of Canadian Heritage is demanding repayment of $99,500 from Toronto Palestinian Families, a group funded under the federal Multiculturalism and Anti-Racism Program, following a review of online content linked to members and associates of the organization.Officials say the material included posts that depicted Israelis in highly inflammatory terms and an image the department associated with Hamas, prompting concerns that the messaging conflicted with the objectives of the program, which is intended to promote intercultural understanding and reduce prejudice.In a letter filed with the Federal Court, government lawyers said the department concluded that communications tied to the group “can be interpreted as contributing to prejudices and division” and risk undermining efforts to encourage dialogue between communities.One Instagram post cited in the government’s filing described Israel as an apartheid state and used language accusing Israeli governments of maintaining systems of oppression. Another post featured an inverted red triangle, which officials linked to Hamas symbolism.Following the review, the department not only rejected the group’s 2026 funding application but also moved to retroactively revoke a similar $99,500 grant awarded in 2025. The department has ordered repayment within 60 days..Toronto Palestinian Families has challenged the decision in Federal Court, arguing the move unfairly penalizes political expression and mischaracterizes advocacy for Palestinian rights as support for extremism.The group’s lawyers say the decision effectively chills legitimate speech and equates human rights advocacy with endorsement of Hamas. They are asking the court to overturn the repayment order and reinstate the funding.The organization, which says it represents roughly 320 families, denies engaging in antisemitic activity. Its legal counsel argues federal funds were used to combat stereotypes and promote understanding between communities.The dispute comes amid broader scrutiny of Ottawa’s anti-racism funding programs.Previous controversy emerged after a Montréal-based group, the Community Media Advocacy Centre, received $133,822 in federal funding while being led by activist Laith Marouf, who was later barred from social media platforms over past antisemitic remarks.In that case, Marouf said in a podcast that federal officials “begged” the group to apply for funding and that approval came quickly, prompting questions in Ottawa about vetting processes for grant recipients.