CRS Faces Cuts Amid Federal Funding Freeze

Catholic Relief Services (CRS) is bracing for substantial reductions following President Donald Trump's decision to cut federal funding for mass migration integration into American communities.

As one of the largest beneficiaries of U.S. Agency for International Development (USAID) funding, CRS has begun to scale back operations, laying off employees and restructuring in response to the federal government's spending freeze, as reported by the National Catholic Reporter.

Some layoffs have already occurred, with insiders predicting an organizational reduction of up to fifty percent this year. "We anticipate that we will be a much smaller overall organization by the end of this fiscal year," stated CRS president and CEO Sean Callahan in an email to staffers. Callahan also noted that several planned programs have already been canceled.

Founded in 1943 by a coalition of Catholic bishops in the U.S. to assist refugees fleeing the devastation of WWII in Europe, CRS claims to serve 200 million individuals across 121 countries today.

Stephen Colecchi, a former director at the Office of International Justice and Peace for the U.S. Conference of Catholic Bishops, criticized the funding cuts, arguing that "targeting" the "tiny portion" of federal funds allocated by USAID is "a haphazard and irresponsible way" to save money. He emphasized that this approach lacks consideration and humanity toward programs that serve the poorest people globally.

The "tiny portion" of funding he refers to amounts to $4.6 billion in U.S. tax dollars from 2013 to 2022.

CRS is not alone in preparing for organizational downsizing; the Hebrew Immigrant Aid Society (HIAS) is experiencing similar challenges, also cutting staff by as much as 20 percent due to the funding reductions initiated by President Trump, according to Forward.

However, HIAS faces additional difficulties stemming from severe mismanagement recently uncovered. Forward noted that "an accounting error" indicated HIAS had participated in "unsustainable spending." Following a review revealing overspending attributed to a mix of technology transition and human error, Chief Financial Officer Lara Moninghoff has departed from her role.

HIAS officer Beth Oppenheim asserted that Moninghoff's actions did not involve any criminal misconduct, stating, "There was no mismanagement of donor funds and HIAS remains a responsible steward of donor funding around the world."

Recently, HIAS's primary focus has been on assisting a growing influx of migrants into the U.S., albeit amid controversy. Last year, the organization faced accusations of providing navigation maps to migrants from South and Central America and Mexico to reach the U.S. border.

With the Trump administration's suspension of new migrant arrivals, HIAS is now restricted in its activities previously conducted under the Biden administration. The organization received at least $500 million in U.S. funds during Biden's term for its migrant importation efforts.

An internal investigation of HIAS’s finances revealed failure to properly vet external organizations that received federal money. HIAS has stated it is implementing "corrective actions" to ensure compliance with federal regulations by partnering organizations.

Despite these challenges, the group continues to facilitate the arrival of migrants into the U.S. and is seeking private funding for the 67 "refugees" it plans to welcome into Chicago this month after the Trump administration froze $363,000 in funding, as reported by the Detroit Jewish News.