U.S. Bishops Recover Refugee Resettlement Funds, End Lawsuit Against State Department

The U.S. Conference of Catholic Bishops (USCCB) recovered money that it says the U.S. Department of State owed the conference for refugee resettlement and voluntarily ended its lawsuit against the department.

According to court records, Judge Trevor N. McFadden dismissed the lawsuit on Jan. 23, one day after the bishops requested the federal District Court for the District of Columbia to dismiss it.

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President Donald Trump’s administration froze State Department payments for refugee resettlement services in January 2025. The following month, the State Department sent “notice of termination” letters, which instructed the USCCB, its affiliates, and other organizations participating in the programs to halt all work.

The bishops then sued the State Department, asking the court to force the department to honor those contracts.

At the time, the USCCB had contracts worth about $65 million. The bishops said in April that the government still owed them more than $24 million for work that was already finished. In July, the USCCB asked the court to pause the lawsuit after both parties reached an agreement on winding down the refugee resettlement work.

The contracts were never reinstated.

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Prior to the Trump administration’s policy changes, the USCCB had partnered with the State Department on refugee resettlement for about four and a half decades.

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