Texas Catholic Charities will drop lawsuit against federal government as payments resume

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CNA Staff, Mar 28, 2025 / 11:00 am (CNA).

A Texas Catholic charity group that sued the federal government this month over budget cuts says it will drop its lawsuit as payments from the U.S. Department of Health and Human Services (HHS) resume. 

Catholic Charities Fort Worth sued the agency at the beginning of March after the Trump administration froze tens of millions of dollars in grants for refugee services in Texas. 

Earlier this month the government said it was conducting a “program integrity review” of the Catholic charity. Last week the government said it had paid out more than $47 million to the charity after completing the review. 

In a “joint status report” filed earlier this week, the charity and the government said HHS has made continuous payments to the Catholic group since March 17 following the conclusion of the review. 

“As a result of [the government’s] representations and action, [the Catholic charity] will move to dismiss this case on or before April 2, 2025,” the filing said. 

The document noted that the charity would only dismiss the lawsuit so long as the group’s funding requests “continue to be paid in the normal course up until that date.”

The lawsuit’s pending dismissal will bring to an end just one of several suits filed in the wake of the major budget and funding cuts the Trump administration has enacted since January. The White House said the cuts were meant to bring federal policy and spending in line with the administration’s agenda.

The U.S. Conference of Catholic Bishops (USCCB) sued the Trump administration in February over what the bishops said was an unlawful suspension of funding for refugee programs in the United States.

The State Department earlier this month canceled two multimillion-dollar refugee resettlement contracts with the USCCB, directing the bishops to “stop all work on the program[s] and not incur any new costs” and “cancel as many outstanding obligations as possible.” The bishops’ lawsuit is still playing out in federal court. 

Several other groups have sued the government over the funding freezes, arguing that the White House engaged in an overreach of its executive power in ending the large amounts of federal payouts.

Lawsuits have also been filed over other Trump White House policies. Multiple religious groups last month sued the administration over its policy allowing immigration officers to arrest suspected illegal immigrants in houses of worship and other “sensitive locations.”