Reaz Qadir Khan, who worked for the City of Portland in a waste disposal plant has been charged with one count of conspiracy to provide material support to terrorists.
The charge is related to the May 2009 bombing that killed 30 people at Pakistan's intelligence headquarters in Lahore, said Amanda Marshall, the U.S. Attorney for the District of Oregon.
Reaz Qadir Khan, 48, faces life in prison if convicted.
According to the indictment, Khan provided money and advice to Ali Jaleel, who was one of the suicide bombers in the attack.
The Justice Department said in a statement that he was arrested Tuesday at his home in Portland. He is due in court Wednesday for a detention hearing.
The indictment alleges that from December 2005 through June 2009, Khan conspired with others including Jaleel, a citizen of the Maldives. Jaleel was killed during a suicide bomb attack on the headquarters of the Inter-Services Intelligence in Lahore, Pakistan on May 27, 2009.
Prosecutors said Khan gave Jaleel approximately $2,500 to attend a terror training camp to get ready for the ISI bombing and promised to help take care of his family afterward.
"Khan allegedly provided Jaleel with advice to help him in his efforts to travel undetected from the Maldives to commit violent jihad and used coded language when communicating with Jaleel to avoid detection," according to a news release issued by the U.S. Attorney's Office in Oregon.
After Jaleel and two others attacked the ISI and were killed, a video was released by al Qaeda's media outlet showing Jaleel at a terror training camp that appeared to be located in the Federally Administered Tribal Area of Pakistan. Prosecutors said the video also had a statement from Jaleel taking responsibility for the attack he was about to commit.
Several days after Jaleel was killed, Khan wired around $750 via Western Union to one of the man's wives in the Maldives, according to the indictment.
"We will find and prosecute those who use this country as a base to fund and support terrorists," said U.S. Attorney Amanda Marshall.
Her sentiments were shared by Greg Fowler, the FBI special agent in charge in Oregon: "The FBI will continue to focus on cutting off the flow of funds that help terrorists train, travel and launch their attacks.