Lawsuit Challenges Sudden Suspension of Funds
The U.S. Conference of Catholic Bishops (USCCB) filed a lawsuit against the Trump administration on Tuesday, challenging the abrupt halt in federal funding for refugee resettlement programs. The bishops argue that the funding suspension is unlawful and severely impacts newly arrived refugees, as well as the nation’s largest private resettlement network.
The lawsuit claims the administration’s decision to withhold millions in reimbursements for costs incurred before the funding cutoff violates multiple laws and disregards Congress’s authority over federal spending. The bishops assert that the move undermines the government’s legal and moral commitments to resettling refugees who have been granted legal status.
Catholic Resettlement Program Faces Layoffs and Service Disruptions
As a result of the funding freeze, the USCCB’s Migration and Refugee Services has already issued layoff notices to 50 employees—more than half its staff. Further cuts are expected across local Catholic Charities offices that partner with the national resettlement program.
Archbishop Timothy Broglio, president of the USCCB, condemned the funding suspension, stating that it prevents the Church from fulfilling its mission to uphold human dignity and serve vulnerable populations, including migrants. He emphasized that the sudden loss of funds has left the USCCB unable to support thousands of refugees assigned to its care by the federal government.
“The conference suddenly finds itself unable to sustain its work to care for the thousands of refugees who were welcomed into our country,” Broglio said, calling the funding gap “financially unsustainable.”
Federal Review Leads to Immediate Funding Freeze
The USCCB is one of ten national refugee resettlement agencies—most of them faith-based—that were informed of the immediate funding suspension in a January 24 letter from the State Department. The letter cited a review of foreign-aid programs as the reason for the halt, despite the fact that refugee resettlement is a domestic initiative focused on providing essential services such as housing and job placement.
The lawsuit, filed in the U.S. District Court for the District of Columbia, argues that the federal government is attempting to “pull the rug out” from under the program, causing lasting harm to refugee assistance efforts. The complaint also highlights that the USCCB consistently spends more on resettlement than it receives in federal funding, making the program impossible to sustain without government support.
Legal Battle Targets State and Health Departments
The lawsuit names the U.S. Department of State and the Department of Health and Human Services (HHS), along with their respective secretaries, Marco Rubio and Robert F. Kennedy Jr. Both agencies play key roles in allocating resettlement work to the USCCB and other refugee organizations.
As of Wednesday, there had been no response from the departments in court. An HHS spokesperson stated that the agency does not comment on pending litigation.
The USCCB is still awaiting approximately $13 million in reimbursements for expenses incurred before January 24. The bishops noted that as of January 25, nearly 6,800 refugees under their care had been in the U.S. for less than 90 days—the critical period during which they are eligible for resettlement aid. The conference warned that suspending the program would only prolong the time it takes for refugees to find employment and become self-sufficient.
Political Fallout and Criticism from Catholic Leaders
The Trump administration’s decision to suspend refugee resettlement is consistent with its broader immigration policies. President Donald Trump, who sharply reduced refugee admissions during his first term, moved to suspend the decades-old program upon returning to office in January.
Vice President J.D. Vance, a Catholic convert, recently accused the USCCB of using the program to resettle “illegal immigrants” in exchange for federal funding. The bishops pushed back, emphasizing that their work exclusively involves legally approved refugees. The lawsuit also refutes Vance’s claim, noting that federal reimbursements do not cover the full cost of resettlement. In 2023, the USCCB spent $4 million more than it received in government funds, with additional support coming from donors and Catholic Charities organizations.
Vance’s remarks sparked backlash from Catholic leaders and an implicit rebuke from Pope Francis, who reaffirmed that Christian charity requires aiding those in need, not just those within one’s immediate community.
