US Bishops End Lawsuit Over Refugee Resettlement Funds After Settlement
The United States Conference of Catholic Bishops has formally ended its lawsuit against the Trump administration over the suspension of its federal refugee resettlement contract, after recovering funds previously owed for its work.
Court records show that the case was dismissed without prejudice by the U.S. District Court for the District of Columbia in late January. The dismissal leaves open the possibility of future legal action on similar grounds, should disputes arise again. The bishops had filed a notice of voluntary dismissal, noting that no formal response had yet been submitted by the government in the proceedings.
A spokesperson for the bishops’ conference confirmed that the organization had recovered more than 24 million dollars in unpaid reimbursements connected to its refugee resettlement activities. The funds had remained outstanding following the administration’s decision in January 2025 to suspend the bishops’ contract under the U.S. Refugee Assistance Program.
The program, created by Congress in 1980, coordinates the resettlement of federally vetted refugees in partnership with nonprofit organizations and faith based agencies. The USCCB’s Migration and Refugee Services division had long served as one of the national agencies assisting newly arrived refugees with housing, employment, and integration support.
In its original lawsuit filed in February 2025, the bishops argued that the contract suspension was unlawful and harmful to vulnerable refugees. The conference described the action as arbitrary and inconsistent with federal statutes, contending that it disrupted services for individuals and families who had already been admitted into the United States through established legal channels.
By mid 2025, both parties informed the court that they had entered into discussions to wind down the conference’s participation in the program. The bishops requested a stay in the proceedings while negotiations continued, citing potential resource savings and the possibility of resolving outstanding claims without further litigation.
Status updates were later submitted to the court as the wind down process unfolded. The suspension of the contract had led the conference to lay off roughly one third of its Migration and Refugee Services staff, reflecting the financial strain caused by the interruption in funding.
In April 2025, the USCCB announced it would not renew certain cooperative agreements with the federal government related to refugee and children’s services, stating that its longstanding partnerships had become untenable under the circumstances.
The conclusion of the lawsuit marks a significant development in the relationship between the Catholic bishops and federal authorities on migration policy. While the immediate financial dispute has been resolved, broader debates about refugee resettlement, the role of faith based agencies, and federal immigration priorities continue to shape public and ecclesial discussion across the United States.
