In a stunning turn of events, the U.S. Conference of Catholic Bishops (USCCB) has formally announced the end of its decades-long partnership with the federal government on refugee resettlement, a move that comes after the Catholic Church in America accepted nearly $2.9 billion in immigration-related funding during the Biden administration alone.
Archbishop Timothy P. Broglio, President of the USCCB, confirmed the decision in a press release and opinion piece for The Washington Post on Monday, stating: “This is a painful end to a life-sustaining partnership the Catholic Church in the U.S. has had with our government and that has spanned decades across administrations of both political parties.”
The archbishop blamed the Trump administration’s freeze on refugee program funding for forcing the Church’s hand. “The bishops’ decision came after the federal government suspended our cooperative agreements to resettle refugees,” Broglio wrote. “The drastic reduction of these programs forced us to reconsider the best way to serve the needs of our brothers and sisters seeking safe harbor from violence and persecution.”
However, the announcement comes at a time of increasing scrutiny into the Church’s financial entanglements with federal agencies, especially under an administration whose policies on abortion, gender ideology, and religious liberty have drawn condemnation from other Catholic leaders and pro-life groups.
A $2.9 Billion Departure
As previously reported by Catholic Online News, an in-depth analysis of data from USAspending.gov showed that Catholic NGOs received more than $2.9 billion in federal funds between 2020 and 2024, more than triple the amount received under President Trump’s first term. This included $2.6 billion to Catholic Charities and nearly $1.6 billion directly to the USCCB. Much of the money came from immigration-focused programs such as Refugee and Entrant Assistance initiatives and the U.S. Refugee Admissions Program.
The Archdiocese of Washington, D.C., alone received $1.6 billion, with the Diocese of Fort Worth trailing at just under $1 billion. Notably, Catholic Charities Fort Worth reported a meteoric rise in revenue from $32 million in 2020 to $289 million in 2023, with over $270 million of that coming from federal grants (City Journal).
Motive or Mission?
Critics argue that this influx of funding may have compromised the Church’s prophetic witness. “When they receive over $100 million to help resettle illegal immigrants, are they worried about humanitarian concerns? Or are they actually worried about their bottom line?” asked Vice President JD Vance during a January interview with CBS News.
In a Jan. 26 statement, the USCCB fired back, defending the integrity of its refugee efforts and asserting that government grants never fully covered program costs. Broglio echoed that sentiment, writing, “Government money never fully covered the cost of what the Church was doing for refugees.”
But the question remains: why now?
With the Biden administration continuing to expand immigration avenues and fund Catholic resettlement organizations, the sudden move to sever ties under the pretext of a Trump-era policy has raised eyebrows. The Church’s public silence regarding Biden’s pro-abortion and anti-religious liberty positions remains a stark contrast to its open clashes with the previous administration.
Crisis of Credibility
Catholic leaders now face a credibility crisis. While the USCCB insists that its resettlement efforts are rooted in Catholic social teaching, the juxtaposition of massive federal contracts, muted moral witness, and delayed disengagement from government funding leads some faithful to question whether the Church’s mission was hijacked by its reliance on taxpayer dollars.
Adding further complexity is the Church’s financial fragility. With over $5 billion paid out in sex-abuse lawsuit settlements and millions more in legal fees, many dioceses are strained and reliant on alternative funding sources. This financial vulnerability may have increased the Church’s dependence on federal contracts, even as its moral authority waned in public discourse.
What Comes Next?
Archbishop Broglio called the split an opportunity for Catholics to “search our hearts for ways to help in the absence of government support.” He has pledged to reorganize the Church’s infrastructure and continue serving refugees through other means.
But the shift marks the end of an era.
For more than a century, Catholic institutions partnered with the federal government to offer humanitarian aid. Now, amid political pressure, financial scrutiny, and growing public doubt, that relationship has come to an abrupt halt.
“The Bible’s call to do what we can for the least among us remains the benchmark,” Broglio concluded. Yet as the Church forges a new path without government dollars, many Catholics are asking whether the Gospel alone will be enough to guide its next steps—or whether deeper accountability is still required.
