The United States Conference of Catholic Bishops (USCCB) has filed a lawsuit against the U.S. Department of State, the Department of Health and Human Services, and several federal officials, alleging that the government unlawfully suspended funding for refugee resettlement programs, leaving thousands of refugees without critical support and jeopardizing the Church’s decades-long humanitarian efforts.
The lawsuit, filed in the U.S. District Court for the District of Columbia on February 18, 2025, claims that the federal government’s abrupt suspension of funding violates federal statutes, the Administrative Procedure Act (APA), and the Constitution’s separation of powers.
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The USCCB is seeking declaratory and injunctive relief to restore funding and prevent “irreparable harm to refugees” and the organizations that support them.
For nearly 80 years, the Catholic Church has been at the forefront of refugee resettlement efforts in the United States, providing essential services such as housing, food, job training, and English-language education to refugees fleeing persecution and instability.
Since 1980, the USCCB has partnered with the federal government through the U.S. Refugee Admissions Program, which provides transitional assistance to refugees during their first 90 days in the country. This partnership has been funded through annual cooperative agreements, with the USCCB receiving approximately $65 million in federal funding for fiscal year 2025 to support its resettlement programs.
However, on January 24, 2025, the State Department abruptly suspended funding for refugee resettlement nationwide, citing a recent executive order that paused foreign aid and vaguely referencing a misalignment with agency priorities. The suspension left the USCCB and other resettlement organizations without reimbursement for services already rendered and unable to continue providing critical support to refugees.
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At the time of the suspension, the USCCB was caring for more than 6,700 refugees within their 90-day transition period. The sudden halt in funding has left the organization with millions of dollars in unpaid reimbursements and mounting weekly expenses. As a result, the USCCB has been forced to lay off 50 employees and may soon be unable to provide housing, food, and other essential services to refugees.
The lawsuit highlights the dire consequences of the funding suspension, not only for the USCCB but also for the refugees it serves. Without federal support, refugees face increased barriers to integration, including difficulties finding employment, accessing education, and achieving self-sufficiency. The USCCB warns that the suspension undermines the statutory mandate of the Refugee Act of 1980, which requires the government to provide adequate funding for refugee resettlement.
The USCCB’s complaint outlines three primary claims:
- Violation of Appropriations Statutes and the Separation of Powers: The lawsuit argues that the funding suspension contravenes Congress’s appropriations for refugee resettlement and violates the Impoundment Control Act, which regulates the Executive Branch’s authority to withhold or delay spending of appropriated funds. By unilaterally suspending funding, the government has overstepped its authority and undermined the Constitution’s separation of powers.
- Arbitrary and Capricious Agency Action: The USCCB alleges that the suspension was implemented without considering its devastating impact on refugees and resettlement organizations. The government’s decision was not based on a reasoned explanation and ignored less disruptive alternatives, such as conducting a review of existing agreements before halting funding.
- Failure to Conduct Notice-and-Comment Rulemaking: The lawsuit claims that the funding suspension constitutes a substantive rule that required public notice and an opportunity for comment under the APA. By bypassing these procedural requirements, the government acted unlawfully.
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The USCCB is asking the court to declare the funding suspension unlawful, set aside the State Department’s actions, and order the government to resume reimbursements under the cooperative agreements.
The organization is also seeking injunctions to prevent further enforcement of the suspension and to ensure that refugees continue to receive the support they need.
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