Refugee organizations in Texas and across the country could soon lose access to millions of dollars in federal funds if state leaders do not act, according to a new Trump administration policy.
In a policy change quietly rolled out last month, the federal Office of Refugee Resettlement said that beginning October 1 it will only disperse support services grants directly to states — and not to nonprofit groups that have long administered refugee programs in some states. The letter detailing the change said 14 nonprofits across the country could be affected.
The change puts these refugee programs at risk of potentially shutting down or making even more drastic cuts just as they are laying off staff and ending some services under President Donald Trump’s strict immigration agenda.
Texas withdrew from the refugee resettlement program in 2016, and handed these duties over to the Texas Office for Refugees operating under Catholic Charities Fort Worth. Through a spokesman, Texas Gov. Greg Abbott did not answer questions about whether the state would rejoin the program now that the federal funds are under threat.
Catholic Charities Fort Worth declined to comment.
Texas nonprofits received more than $90 million in 2024, according to the Office of Refugee Resettlement. The money helps refugees — including people from Afghanistan, Burma, Democratic Republic of Congo, Cuba, Venezuela and Ukraine — with job training, digital literacy, English-language classes and programs for seniors and kids.
Those who’ve worked in refugee resettlement for years lament how the program is effectively being dismantled. Daley Ryan, the former director of the Texas Office for Refugees, said he is upset to see Texas — which has led in refugee resettlement — headed in this direction.
“I was always the one out there proselytizing what a leader Texas and Texans were in these programs and how it made it a better place to live,” Ryan told The Texas Newsroom. “It’s really tough to see all that work be undercut and be undone.”
Uncertainty for Texas refugees
The Texas Newsroom contacted refugee coordinators in multiple states that may be affected by the funding cuts and heard back from five: Alabama, Alaska, Arkansas, Missouri and South Dakota.
Liz Kurtz, the state refugee coordinator in Alabama, said the program there may end.
She said she didn’t know what would ultimately happen but that she was unsurprised by the policy change after the Trump administration suspended indefinitely the refugee resettlement program in January.
“But this decision makes providing refugee services difficult,” Kurtz added.
Paul Costigan, the state refugee coordinator in Missouri, said he has been talking with state officials and hopes something can be done to avoid losing these funds. Nonprofit leaders in the other states also said it was too early to know exactly what would happen to the funding, or declined to comment altogether.
How much money states receive for refugees varies annually and depends on the number of people eligible for services as well as how many were served the previous two years.
In 2024, Texas received about $93.7 million in federal grants for refugee support services, the second largest amount behind Florida. The five additional states that responded to The Texas Newsroom received more than $10 million last year.
Catholic Charities Fort Worth recently sued the U.S. Department of Health and Human Services over funds it had not received. According to court filings last month, the federal government then recently released $47 million to the group.
Ryan, the ex-director of the Texas Office of Refugees, said even if funding is eventually restored, these programs won’t be easy to rebuild.
“The damage that has already been done and is continuing to be done today is going to take a very, very long time to undo,” he told The Texas Newsroom.
When Texas initially pulled out of the refugee resettlement program, Abbott raised concerns that the federal government was not properly vetting refugees who were admitted to the U.S.
Now, Abbott spokesman Andrew Mahaleris did not answer specific questions about whether the state would step back in to stem the federal funding loss.
“Under President Biden, Texas and the United States faced record levels of migration for the past four years, and taxpayers have had to bear the burden. Governor Abbott fully supports President Trump’s efforts to protect national security and public safety while preserving American taxpayer dollars,” Mahaleris told The Texas Newsroom in a statement.
Jen Smyers served as deputy director for the Office for Refugee Resettlement until Trump took office. She questioned whether this policy decision was lawful.
“This would have really disastrous consequences,” Smyers said. “It really puts states in a bad spot.”
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The Texas Newsroom is a public radio journalism collaboration that includes NPR, KERA in North Texas, Houston Public Media, KUT in Austin, Texas Public Radio in San Antonio and other stations across the state.