Since September 11, in spite of the rhetoric on how the world has been transformed, U.S. foreign policy has approached the Islamic world and the war on terrorism as little more than old wine in new wine skins. During the Cold War, U.S. scholars and policymakers asked why people become communists. Now they ask why people become religious terrorists, extremists, and fundamentalists. What is so striking is that the solutions scholars give to this national security problem today is similar to the ones they proposed a half-century ago – more foreign aid to promote liberal democracy and free market capitalism. The Carnegie Endowment for International Peace (CEIP) has been bold enough to call this policy “funding virtue,” even though scholars and policymakers have largely ignored the role of virtue or religion in sustaining democracy and development. The closest the United States has come to recognizing the role of virtue and religion in foreign policy is to promote religious freedom through the Office of International Religious Freedom created in the State Department during the Clinton administration.