The Archdiocese of New York is preparing for significant financial and structural changes as it seeks to resolve long-standing clergy sexual abuse claims through a proposed $300 million settlement.
According to LifeSiteNews, Cardinal Timothy Dolan informed archdiocesan leadership in a December 8 letter that the archdiocese will reduce spending, eliminate staff positions, and sell off major real estate holdings in order to fund compensation for more than 1,300 individuals who have brought abuse-related lawsuits as part of a broader settlement effort.
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In the letter, Cardinal Dolan acknowledged the deep harm caused by past abuse, writing that “the sexual abuse of minors long ago has brought shame upon our Church,” and again asked forgiveness for “the failing of those who betrayed the trust placed in them,” according to LifeSiteNews.
The cardinal explained that the decisions were made after what he described as difficult discernment, noting that the archdiocese has already begun implementing layoffs and cutting its operating budget by 10 percent. He added that the sale of archdiocesan properties is expected to generate more than $300 million, which would be reserved specifically to compensate survivors of sexual abuse, according to LifeSiteNews.
While the announcement was presented as a step toward healing, abuse survivors and their advocates have strongly criticized the approach. Multiple advocacy groups have argued that dioceses in New York should instead access funds held by the Mother Cabrini Health Foundation, rather than placing financial strain on parish employees and Catholic communities who played no role in the abuse, according to LifeSiteNews.
The Mother Cabrini Health Foundation, which focuses on healthcare initiatives for vulnerable New Yorkers, is valued at approximately $4 billion. The foundation was created after the 2018 sale of Fidelis Care, a Catholic health insurance organization previously overseen by New York’s eight dioceses, with Cardinal Dolan serving as president of its board at the time, according to LifeSiteNews.
Kevin Brun, a clerical abuse survivor, told LifeSiteNews that placing the Fidelis Care proceeds into the foundation effectively shielded the funds from legal claims. “Cardinal Dolan, in a premeditated move, placed those funds in the Mother Cabrini (Foundation) so it couldn’t be touched to satisfy settlements and abuse cases,” Brun said. He added that dioceses frequently frame their actions as concern for survivors while prioritizing financial protection, a pattern he described as “horrific,” according to LifeSiteNews.
Cardinal Dolan also announced that both the archdiocese and representatives of abuse survivors have agreed to appoint retired Judge Daniel J. Buckley as a neutral mediator. Buckley previously oversaw settlement negotiations between the Archdiocese of Los Angeles and more than 1,000 abuse survivors, according to LifeSiteNews.
The Archdiocese of New York has faced heightened scrutiny since 2018, when credible allegations emerged against former Cardinal Theodore McCarrick related to abuse during his time as a priest in New York in the 1970s. Those revelations ultimately led to his removal from ministry, according to LifeSiteNews.
That same year, concerns over the handling of abuse allegations prompted the New York Attorney General’s office to launch investigations into all eight dioceses in the state. Settlements have since been reached with the dioceses of Buffalo, Brooklyn, and Rockville Center, while investigations involving Albany, Syracuse, Rochester, and Ogdensburg are still underway, according to LifeSiteNews.
LifeSiteNews reported that the Archdiocese of New York did not respond to requests for comment before publication.
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