The United States Conference of Catholic Bishops (USCCB) has filed a federal lawsuit against two U.S. government agencies, alleging an unlawful suspension of refugee resettlement funds. The suit, lodged Tuesday in D.C. federal court, claims the Bureau of Population, Refugees and Migration (PRM) and the U.S. Department of Health and Human Services (HHS) froze funding without due process, leaving thousands of refugees in limbo.

Refugee Program Abruptly Halted

The USCCB said it received only a "cursory, two-page letter" from PRM notifying them that their resettlement assistance agreements had been suspended. The letter referenced a recent executive order and vaguely suggested the program no longer aligned with State Department priorities, according to the complaint.

"The consequences of the refugee funding suspension have been predictably devastating for USCCB and the 6,700 refugees it supports," the lawsuit states. The 90-day transitional period—a crucial phase for newly arrived refugees—was thrown into chaos, as millions of dollars in pending reimbursements for services already rendered remain unpaid. Meanwhile, costs continue to skyrocket, with no sign of when, or if, the program will resume.

Decades of Refugee Assistance in Jeopardy

The Catholic Church has been a cornerstone of refugee resettlement efforts for nearly 80 years, providing essentials such as housing, food, and job training. Since 1980, it has worked hand in hand with the federal government to fulfill this mission.

Under federal law, refugees who enter the U.S. are legally entitled to financial assistance for their initial resettlement period. By suspending payments, the lawsuit argues, the executive branch has overstepped its authority and violated the Administrative Procedure Act (APA), which mandates public notice and input before such actions are taken.

The bishops further contend that the funding freeze breaches the U.S. Constitution’s separation of powers, as Congress had already appropriated funds for refugee assistance.

“Given the continuing availability of appropriations, the executive branch cannot unilaterally and indefinitely refuse to fund those statutorily mandated services,” the lawsuit asserts.

Trump Administration Under Fire

Congress allocated $3.9 billion to the Migration and Refugee Assistance Act in 2024, and under the Impoundment Control Act, the president must formally justify any funding freezes to Congress. Yet, the lawsuit alleges that President Donald Trump has failed to provide such an explanation.

“This lawsuit challenges the State Department’s unexplained, unilateral decision to cancel a program authorized by Congress for over 40 years,” said Dhananjay Manthripragada of Gibson Dunn & Crutcher LLP, who represents the bishops.

“The abrupt cancellation has caused irreparable harm to USCCB and its partner organizations, while leaving thousands of legally admitted refugees stranded. We are optimistic the courts will intervene and allow this crucial work to continue.”

Government Silent on Allegations

A spokesperson for HHS declined to comment Wednesday, while the State Department did not immediately respond to requests for a statement.

The bishops are represented by Dhananjay Manthripragada and David Casazza of Gibson Dunn & Crutcher LLP.

Legal representation for the State Department and HHS was not immediately available.