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Attorney General Eric Holder says the group helped facilitate and direct the plot by confessed attacker Faisal Shahzad, and that they will likely come up with evidence the terror group financed the plot, as well.

President Barack Obama's homeland security and counterterrorism adviser John Brennan echoed the attorney general's comments, but downplayed suggestions that the attempted bombing shows that overseas terrorist groups are gaining strength.

Shahzad is a naturalized United States citizen of Pakistani descent. He told investigators he spent five months in Pakistan – where he received explosives training – before returning to the U.S. in February.

Shahzad parked an explosives-filled SUV in Times Square on May 1st. He was caught two days later aboard a Dubai-bound flight out of John F. Kennedy airport.

Meanwhile, Senator Charles Schumer says the attempted attack in Times Square proves New York needs more help from the federal government to fight terrorism.

Schumer says the city is estimated to receive $151 million, or 18 percent, of the Urban Area Security Initiative this year. That's compared to more than $200 million, or 25 percent of the program that the city received in 2005.

"Cities that are not even regarded as terrorists targets that have never come up as terrorist targets. Louisville, Kentucky, Indianapolis, Indiana receive UASI funding, while our share has decreased,” said Schumer. “That can't happen; it's not fair to New Yorkers."

Schumer says additional money should go in part towards expanding New York City Police Department surveillance projects in Midtown and Lower Manhattan.