Feds ordered to pay Catholic Charities millions in blocked refugee funds

FORT WORTH – The Fort Worth Star-Telegram reports the federal government has until March 18 to pay Catholic Charities Fort Worth millions in grant funds that have been withheld since January. A federal judge on March 14 ordered the Department of Health and Human Services to release $47 million that became entangled in the Trump administration’s restructuring of federal programs. The grants were allocated to pay for organizations that partner with Catholic Charities Fort Worth, such as the Texas Office for Refugees, which provides resettlement services to people fleeing violence and persecution in their home countries. Catholic Charities Fort Worth sued HHS and Health Secretary Robert F. Kennedy earlier this month, alleging the federal government had unlawfully frozen the funding. The pause led to thousands of refugees losing their cash payment benefits, which resulted in evictions and other hardships, the organization said, as well as the possibility of having to lay off almost almost half of its staff across Texas.

On March 10, Catholic Charities Fort Worth filed a WARN Act notice that it would lay off 169 of its approximately 400 employees in Texas effective Friday. The 1989 Worker Adjustment & Retraining Notification Act is meant to protect workers and their families by requiring employers to give 60-day notice of mass layoffs and plant closings. In a joint statement on Friday, Michael Iglio, CEO of Catholic Charities Fort Worth, and Jeff Demers, state refugee coordinator of Texas Office of Refugees, said the U.S. District Court in Washington ordered the funds to be released during a status conference on the lawsuit on Friday. “The withholding of these essential funds led to significant challenges, including widespread layoffs and the disruption of vital services for more than 100,000 across 29 partner agencies throughout Texas,” they said. “The anticipated release of these funds marks a pivotal step toward restoring and enhancing the support systems that empower individuals and families to achieve self-sufficiency and build successful lives within our communities.” HHS did not immediately respond to a request for comment. Catholic Charities Fort Worth has administered the state’s refugee resettlement services since 2016, when Gov. Greg Abbott pulled Texas from the federal program.