By Mae Slater on
 February 21, 2025

Judge rejects Catholic Bishop lawsuit to restore refugee resettlement funding cut by Trump

A federal judge has decided not to temporarily lift the stoppage of financial support for the U.S. Conference of Catholic Bishops’ refugee resettlement initiatives, creating uncertainty for thousands affected by the decision.

The Hill reported that the lawsuit claims that the freeze order by President Donald Trump's administration undermines Congress's intent and threatens harm to refugee support, while a hearing is set to reconsider the case.

Federal Judge Trevor McFadden, appointed by President Trump, declined a request for a restraining order on the funding freeze executed by the Trump administration.

This refusal comes as a response to a legal challenge by the USCCB, which has emphasized the negative effects of the suspension on refugee services and the integration processes they provide.

Funding Freeze Prompts Legal Challenge

The USCCB argues that the halt in funding conflicts with the intentions of Congress and poses significant risks to the stability and continuation of critical refugee assistance programs.

Despite the federal judge's ruling to maintain the freeze for now, there remains potential for future modification of this decision, as indicated by Judge McFadden. He mentioned the possibility of revisiting the funding situation and established a hearing for a preliminary injunction on February 28.

The freeze, executed late last month, has already impacted more than 6,700 refugees assigned to the USCCB's care. This abrupt halt in funding has led to immediate consequences for the organization, including the need to lay off employees who are integral to providing these essential services.

Currently, 5,200 refugees still rely on the care provided by USCCB, though uncertainties persist due to the financial suspension.

David Casazza, representing the USCCB, expressed frustration, reflecting on the unexpected nature of the funding cut by stating that the organization's long-standing partnership with the federal government suddenly faced an unprecedented challenge.

The organization estimates that the State Department has outstanding obligations totaling $13 million, with an added liability of $11 million accruing since the suspension.

The USCCB intends to enforce staff reductions in its Migration and Refugee Services division starting March 7, affecting over half of its workforce. These reductions will extend to local Catholic Charities offices as well, highlighting the widespread impact of the funding freeze.

Government's Stance and Legal Implications

The move by the Trump administration was based on a broad executive order that paused foreign aid distribution. However, the USCCB asserts that their program primarily provides domestic assistance, thus contesting the applicability of this order.

The Justice Department, through lawyer Joseph Carilli, maintains that the program falls under the realm of foreign affairs due to its international connections.

Additionally, the Trump administration now faces multiple lawsuits from various immigration advocacy groups. These legal challenges are addressing both the current funding suspensions and other immigration policy changes deemed controversial by critics.

The legal argument put forward by the USCCB also claims that the funding suspension breaches Congress's constitutional budgetary authority alongside multiple federal statutes.

This intensifies the current legal confrontation, with potential ramifications for long-term policy and legislative enforcement in refugee resettlement operations.

Written By:
Mae Slater

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