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Catholic Charities Fort Worth sues HHS over refugee resettlement money

Catholic Charities Fort Worth filed a federal lawsuit on Monday against the U.S. Department of Health and Human Services and its secretary, Robert F. Kennedy, Jr., alleging that HHS is unlawfully withholding federal funds.

According to the lawsuit, filed in Washington, D.C., federal district court, Catholic Charities has made numerous unsuccessful attempts to access $36 million it is owed for work resettling refugees.

The lawsuit alleges that it has not been paid since the Trump Administration announced a blanket freeze to federal funding but rescinded the order before it was supposed to take effect.

"CCFW has not been able to draw down any funds—and has not received any indication why its funds remain frozen," the lawsuit says.

CBS News Texas has reached out to HHS for comment on the lawsuit. HHS said it does not comment on ongoing litigation.

Michael Iglio, CEO of Catholic Charities Fort Worth, and Jeff Demers, State Refugee Coordinator of the Texas Office of Refugees, released the following statement:

"Today, a lawsuit was filed in the U.S. District Court for the District of Columbia against the United States Department of Health and Human Services (HHS) and Robert F. Kennedy, Jr., challenging the unlawful withholding of over $36 million in federal grant funds designated for Texas to support individuals and families lawfully admitted by the U.S government.

These funds, mandated by law for organizations contracted by the federal government to care for these individuals and families, are crucial for providing essential services to those fleeing persecution in their home countries.

Despite four attempts in January to secure payment-followed by ten additional requests over the next four weeks-HHS has unlawfully continued withholding the financial support allocated under existing grant agreements. This obstruction has severely impacted the delivery of critical services, including employment assistance, legal aid, educational programs, and healthcare services designed to help individuals and families integrate and thrive in Texas communities.

In its role as the Replacement Designee for the State of Texas, Catholic Charities Fort Worth filed this lawsuit on behalf of the Texas Office for Refugees, its partner agencies, and the more than 100,000 individuals and families who rely on essential, congressionally mandated services."

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