Catholic Charities Fort Worth is accusing the federal government of unlawfully withholding more than $36 million in refugee resettlement funds, leading to staff layoffs and program cuts across Texas.
The charity, which oversees the Texas Office for Refugees, filed a lawsuit March 3 against the U.S. Department of Health and Human Services and Secretary Robert F. Kennedy Jr. to unfreeze federal grant funding allocated to Catholic Charities Fort Worth’s refugee resettlement program.
Catholic Charities Fort Worth has acted as the replacement agency for the state’s Office of Refugee Resettlement since October 2021. Texas withdrew from the nation’s refugee resettlement program in 2016, effectively leaving nonprofits to administer federal refugee funds.
The lawsuit, filed in the U.S. District Court for the District of Columbia, is one of many submitted by refugee resettlement agencies and religious groups over federal funding changes. President Donald Trump signed an executive order Jan. 20 pausing the federal refugee program.
As part of the order, the White House sought to freeze all federal funding, including organizations that work with resettling refugees. A federal judge temporarily blocked the effort Jan. 25. The Trump administration rescinded the order Jan. 29 after outcry against the move that would have paused most federal grants and loans.
The lawsuit alleges that while “many entities have received their federal funding in the weeks since the attempted funding freeze,” Catholic Charities Fort Worth “has not been able to draw down any funds — and has not received any indication why its funds remain frozen.”
“These funds, mandated by law for organizations contracted by the federal government to care for these individuals and families, are crucial for providing essential services to those fleeing persecution in their home countries,” according to a joint statement from Catholic Charities CEO Michael Iglio and Jeff Demers, state refugee coordinator of the Texas Office for Refugees.
A spokesperson for the U.S. Department of Health and Human Services did not immediately respond to a request for comment on the lawsuit.
Catholic Charities Fort Worth officials say they have submitted 14 requests for funding since Jan. 29, totaling more than $36 million. The organization has not received “one dollar of those requests,” lawyers wrote.
“The consequences of this pause on federal funding have been devastating for (Catholic Charities Fort Worth) and the 100,000 individuals and families that it supports,” according to the March 3 filing.
Of the charity’s 29 partner agencies, 24 have had to lay off staff or furlough employees, leading to a 64% drop in staffing capacity in cities like Dallas and Houston. By the end of February 2025, nearly 750 partner agency staff had been laid off or furloughed as a result of the funding freeze, according to the lawsuit.
Over 10,000 individuals served by Catholic Charities Fort Worth agencies have been unable to receive cash assistance, “which has led to evictions from apartments, apartment occupancy dropping, and the potential that apartment complexes will not be able to operate and owners will have to sell and shut down operations,” according to the lawsuit.
Catholic Charities’ growing — and scrutinized — role in refugee services
For nearly 50 years, Catholic Charities Fort Worth has served refugees, defined as someone located outside of the U.S. who is of “special humanitarian concern” and “demonstrated that they were persecuted or fear persecution due to race, religion, nationality, political opinion, or membership in a particular social group,” according to U.S. Citizenship and Immigration Services.
In 2017, the federal Office of Refugee Resettlement assigned Catholic Charities Fort Worth and three other regional replacement designees to administer the refugee resettlement program for the state of Texas. Catholic Charities Fort Worth became the sole administrator of the program in 2021 and agreed to continue in that role through the end of fiscal year 2026.
The Texas Office for Refugees oversees the administration of the Cash and Medical Assistance and Refugee Support Services programs, which includes disbursing funding to local resettlement agencies and refugee service providers across the state.
Over 5,000 refugees made Texas their home in 2023, leading the nation in refugee resettlement, according to a November 2024 report by the U.S. Department of Homeland Security.
Catholic Charities has been at the forefront of political tensions over faith-based groups who work with refugees or migrants. Conservative activists have accused the organization of incentivizing illegal immigration “while sometimes accusing faith groups of breaking the law or working with drug cartels,” according to a 2024 Religion News Service report.
Tarrant County Republican Party Chair Bo French has been among the most vocal critics of Catholic Charities Fort Worth, releasing multiple statements accusing the organization of being a “willing accomplice” in increasing the number of immigrants in the U.S. without legal status.
In a Q&A document released by Catholic Charities Fort Worth and the Texas Office for Refugees last year, the organization said it “does not support, promote or facilitate illegal border crossings” and only assists eligible clients who have been legally admitted into the U.S.
An individual seeking refugee status must submit their case, proving they meet the definition of a refugee, to the United Nations High Commissioner for Refugees to be registered, according to World Relief. Those offered resettlement in the U.S. go through a series of interviews and checks conducted by the federal government. Applicants with any connection to human rights violations or terrorist groups are automatically excluded from consideration.
Catholic Charities accuses the federal government of violating the Refugee Act of 1980 and the Impoundment Control Act, which governs the roles of Congress and the White House in the budget process. The charity is asking the court to restore the four grant awards it receives from the federal government and prevent federal officials from enforcing any kind of pause on refugee resettlement funds.
The funding freeze has “seriously eroded trust and confidence” within refugee communities, the lawsuit reads.
“That damage is lasting and irreparable,” attorneys wrote.
Marissa Greene is a Report for America corps member, covering faith for the Fort Worth Report. You can contact her at [email protected]. At the Fort Worth Report, news decisions are made independently of our board members and financial supporters. Read more about our editorial independence policy here.
This article first appeared on Fort Worth Report and is republished here under a Creative Commons license.
