 In 1987 Balkany became embroiled in a scandal after soliciting politicians to approve a $1.8 million grant from the Department of Health and Human Services to "Yeshiva Rav Isacshon" to acquire a building in Los Angeles.Department officials later asked for the return of the money to the government.Balkany has also lobbied the U.S. Bureau of Prisons to improve conditions for Orthodox Jewish prisoners.