Grace Thompson
Catholic Charities Fort Worth sued the US Department of Health and Human Services and Secretary Robert F. Kennedy, Jr. for withholding millions in refugee resettlement funds. The lawsuit alleged that the federal government was violating the Refugee Act of 1980 and the Impoundment Control Act. As a result, Catholic Charities Fort Worth experienced staff layoffs and program cuts. In response, the Trump administration paid $47 million in grants to the charity, and Catholic Charities agreed to drop the lawsuit. In another case, Catholic Charities sued its former accountant and a financial services firm for millions in credit card fraud. The charity has also been involved in religious-rights cases over unemployment taxes, with the Supreme Court ruling in their favor.
| Characteristics | Values |
|---|---|
| Catholic Charities Fort Worth sues the federal government | To unlock $36 million in paused refugee funds |
| Catholic Charities sues its ex-accountant and a financial services firm | For alleged involvement in a scheme that stole millions of dollars |
| Catholic Church gets $1.4 billion | To cover costs for child abuse lawsuits |
| Trump administration pays $47 million to Texas Catholic Charity | Amid funding lawsuit |
| Catholic Charities USA | Urges the Trump administration to "rethink" its pause on federal funding for executive departments |
| Catholic Charities | Appeals to the justices after Wisconsin's highest court rules against it |
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What You'll Learn
- Catholic Charities Fort Worth sues for withheld refugee funds
- Catholic Charities sues ex-accountant for credit card fraud
- Catholic Charities sues financial firm Baker Tilly for negligence
- Catholic Charities receives $47 million amid funding lawsuit
- Catholic Charities wins religious-rights case over taxes
Catholic Charities Fort Worth sues for withheld refugee funds
Catholic Charities Fort Worth sued the federal government in early March 2025, accusing it of unlawfully withholding more than $36 million in refugee resettlement funds. The charity filed a lawsuit against the U.S. Department of Health and Human Services and Secretary Robert F. Kennedy, Jr., claiming that the freezing of funds had led to staff layoffs and program cuts across Texas.
Catholic Charities Fort Worth has been the sole administrator of the refugee resettlement program for the state of Texas since 2021. The Texas Office for Refugees, overseen by the charity, disburses funding to local resettlement agencies and refugee service providers across the state. Over 5,000 refugees resettled in Texas in 2023, the highest in the nation.
The lawsuit alleges that Catholic Charities Fort Worth has been unable to access any federal funding since the attempted funding freeze, despite other entities receiving their allocated funds. According to a joint statement by Catholic Charities CEO Michael Iglio and Jeff Demers, the state refugee coordinator, these funds are crucial for providing essential services to those fleeing persecution.
The charity also accuses the federal government of violating the Refugee Act of 1980 and the Impoundment Control Act, which governs the budget process. It seeks to restore its four grant awards and prevent any future pauses on refugee resettlement funds. The funding freeze has reportedly eroded trust within refugee communities, causing lasting and irreparable damage.
The Trump administration's broad executive orders freezing federal funding have impacted numerous Catholic groups and nonprofits across the United States, triggering a series of lawsuits. The administration later authorized a payment of $47 million to Catholic Charities Fort Worth amid the ongoing lawsuit.
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Catholic Charities sues ex-accountant for credit card fraud
Catholic Charities of the Archdiocese of Milwaukee has sued its former employee, Brandi Ellis, for credit card fraud and creating fake invoices as part of a years-long scheme to steal millions of dollars. Ellis worked as an accountant, accounting manager, and finance manager at the charity from February 2014 to May 2024. The lawsuit, filed in Wisconsin Circuit Court, alleges that Ellis abused her authority and misappropriated millions of dollars by paying false invoices that funnelled money to vendors with personal or professional connections to her. The suit seeks damages from both Ellis and the accounting firm Baker Tilly, which failed to identify the fraudulent activity as part of its auditing services.
This incident of embezzlement is not unique within Catholic Charities. In the Cleveland diocese, there were two simultaneous embezzlements occurring a few years ago. Some have criticised Catholic Charities for negligence in not implementing strong internal control and audit procedures.
Catholic Charities Fort Worth has also been involved in a lawsuit, suing the federal government to unlock $36 million in paused refugee funds. The charity accused the federal government of violating the Refugee Act of 1980 and the Impoundment Control Act, which governs the budget process between Congress and the White House. The lawsuit argued that the funding freeze had seriously eroded trust and caused lasting and irreparable damage within refugee communities.
The Trump administration's broad executive orders freezing federal funding for executive departments have impacted Catholic Charities programs across the United States, leading to staff layoffs and program cuts. Catholic Charities in Texas, Florida, and Kansas have spoken out about the negative consequences of the funding freeze on their operations. As a result, the Trump administration paid out $47 million in grants to a Texas Catholic Charities group amid the ongoing lawsuits.
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Catholic Charities sues financial firm Baker Tilly for negligence
Catholic Charities of the Archdiocese of Milwaukee has sued the financial firm Baker Tilly for negligence. The lawsuit, filed in May 2025, alleges that Baker Tilly failed to identify fraudulent activity carried out by a former Catholic Charities employee, Brandi Ellis. Ellis, who worked for Catholic Charities for over 10 years, is accused of stealing millions of dollars through various schemes involving credit card fraud and false invoices. The lawsuit claims that Baker Tilly should have recognized purchases that were not in support of the charity's mission and were clearly for personal use, such as "Amazon Prime video rentals, Uber rides, Ticketmaster purchases, and casino purchases from MGM Grand."
The suit also alleges that Baker Tilly relied solely on internal documents generated by Ellis, rather than seeking independently verified third-party data. This, the suit argues, constitutes a failure to "maintain professional skepticism [and] exercise professional judgment." As a result, Catholic Charities is seeking damages from both Ellis and the accounting firm.
This case has brought attention to the potential oversight of auditing firms when dealing with churches and non-profits. Some have questioned whether there is a lax attitude towards such organizations because they are not-for-profit. The outcome of this lawsuit will likely have implications for other auditing firms and their level of scrutiny when reviewing the finances of churches and non-profits.
In addition to the lawsuit against Baker Tilly, Catholic Charities has also been involved in other legal proceedings as a plaintiff and defendant. As a plaintiff, Catholic Charities Fort Worth sued the federal government in March 2025 to unlock $36 million in paused refugee funds. The charity accused the government of violating the Refugee Act of 1980 and the Impoundment Control Act. As a defendant, Catholic Charities was sued by the Trump administration, which sought to freeze federal funds for the organization. This led to counter-lawsuits from Catholic Charities and other nonprofit and aid groups, arguing that the White House overreached its executive power.
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Catholic Charities receives $47 million amid funding lawsuit
Catholic Charities Fort Worth received $47 million from the Trump administration amid a funding lawsuit. The Texas Catholic charity group had its funds blocked among the billions of dollars frozen by broad executive orders issued by President Donald Trump shortly after he took office. The funding freeze sparked a series of lawsuits from nonprofits and aid groups that claimed the White House had overstepped its authority by ending large sums of federal payouts.
Catholic Charities Fort Worth filed a lawsuit against the U.S. Department of Health and Human Services and Secretary Robert F. Kennedy, Jr., accusing the federal government of unlawfully withholding more than $36 million in refugee resettlement funds. The charity, which has overseen the Texas Office for Refugees since 2021, argued that the funding freeze had led to staff layoffs and program cuts across Texas. In a "joint status report," the charity group and the federal government stated that Catholic Charities Fort Worth had filed $47,426,180.17 in "advance payment requests," which the government authorised on the same day.
The funding freeze affected numerous Catholic groups, including the U.S. Conference of Catholic Bishops (USCCB), which sued the Trump administration over the unlawful suspension of funding for refugee programs. The State Department cancelled two multimillion-dollar refugee resettlement contracts with the USCCB and directed them to stop all work on the programs. Multiple Catholic charity groups announced layoffs and spoke out about how the funding freeze impacted their program-specific and agency-wide efforts.
The president of Catholic Charities USA urged the Trump administration to reconsider its pause on federal funding for executive departments. The funding freeze has also been criticised for eroding trust and confidence within refugee communities, with attorneys arguing that the damage is lasting and irreparable. The lawsuit by Catholic Charities Fort Worth sought to restore the four grant awards it receives from the federal government and prevent any pause on refugee resettlement funds.
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Catholic Charities wins religious-rights case over taxes
The US Supreme Court has ruled in favour of Catholic Charities in a religious-rights case over unemployment taxes. The case was brought by the Catholic Charities Bureau in Superior, Wisconsin, which had argued it was wrongfully denied a religious exemption from paying state unemployment tax. The Wisconsin Supreme Court's liberal majority had previously ruled 4-3 in favour of the state's workforce agency and labour review commission over the denial of the exemption.
The US Supreme Court justices ruled 9-0 that the state violated the First Amendment's guarantee of religious freedom by requiring the group to pay unemployment tax while exempting other faith groups. Justice Clarence Thomas said the First Amendment's guarantee of church autonomy gives religious groups the right to conduct internal affairs without state interference. Justice Sonia Sotomayor wrote that the First Amendment requires the government to be neutral between religions.
The Becket Fund for Religious Liberty, which represented the group, heralded the ruling as a major victory for religious liberty. Eric Rassbach, vice president and senior counsel, said: "It was always absurd to claim that Catholic Charities wasn’t religious because it helps everyone, no matter their religion." The ruling is expected to allow the Catholic charity to pull out of the state’s unemployment system in favour of one operated by the faith.
The ruling could have wider effects around the country, with many states having tax exemptions for religious organizations and some large employers with religious affiliations. However, the decision has been criticised by some, with the Freedom From Religion Foundation arguing that it could end up leaving 700,000 to more than 1 million workers without unemployment coverage.
In a separate case, Catholic Charities Fort Worth sued the federal government to unlock $36 million in paused refugee funds. The lawsuit alleged that the government was unlawfully withholding the funds, leading to staff layoffs and program cuts across Texas. Catholic Charities Fort Worth has been the sole administrator of the state's refugee resettlement program since 2021. The Trump administration later paid out $47 million in grants to the group amid ongoing lawsuits over frozen federal funds.
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Frequently asked questions
No, Catholic Charities does not provide money for lawsuits. In fact, they have been involved in several lawsuits themselves, including suing the federal government to unlock paused refugee funds.
Catholic Charities Fort Worth sued the U.S. Department of Health and Human Services and won, receiving \$47 million in grants for refugee services.
Catholic Charities accused the federal government of unlawfully withholding more than \$36 million in refugee resettlement funds, violating the Refugee Act of 1980 and the Impoundment Control Act.
Yes, Catholic Charities has been involved in several other lawsuits. For example, they sued an ex-accountant and a financial services firm for allegedly stealing millions through credit card fraud. They have also been involved in religious-rights cases and lawsuits related to funding freezes by the Trump administration.
Yes, in 2020, it was reported that the Catholic Church received \$1.4 billion to cover the costs of child abuse lawsuits.
