Joshua Bennett
Catholic Charities USA (CCU) is an umbrella group for local Catholic charities across the United States. It is the second-largest social safety net provider in the country, after the federal government. CCU provides a wide range of charitable social services, including food banks, foster care, adoption centres, and immigrant detainee housing. The organisation has received federal funding in the past, with around two-thirds of its annual spending coming from government sources. However, in 2025, the Trump administration attempted to strip federal funding from CCU as part of its immigration policy enforcement. This move was criticised by CCU, which urged the government to reconsider, highlighting the potential impact on millions of Americans who rely on their support.
| Characteristics | Values |
|---|---|
| Funding sources | Two-thirds of Catholic Charities' annual spending comes from government sources, including federal grants. In 2021, Catholic Charities USA received over $2 million in federal grants. |
| History of government funding | Catholic Charities has worked with the federal government for over a century. In 1980, Catholic bishops began partnering with the federal government to carry out refugee services through the US Refugee Admissions Program (USRAP). |
| Political involvement | Catholic Charities has been involved in political debates and advocacy since its inception. It has advocated for government activism and the expansion of welfare programs. |
| Tax exemption | The Supreme Court backed Catholic Charities in a tax exemption case, ruling that the group was unfairly denied an exemption by the Wisconsin Supreme Court. |
| Funding freeze | In January 2025, the Trump administration ordered a freeze on federal funding for Catholic Charities and other organizations, which could significantly impact those relying on their services. |
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What You'll Learn
Trump's executive order to strip federal funds
The federal government provides funding to Catholic Charities, with about two-thirds of Catholic Charities' annual spending coming from government sources. This includes more than half a billion dollars in federal grants alone.
On January 28, 2025, the White House announced that President Donald Trump had signed an executive order to freeze federal financial assistance programs, including federal grants and loans to nongovernmental organizations (NGOs). This order was intended to enforce his administration's immigration policies and combat "wokeness." Catholic Charities USA was specifically mentioned as one of the organizations that would be impacted by the funding freeze.
Karoline Leavitt, the White House Press Secretary, clarified that the order was not a "blanket pause" on federal assistance and that "individual assistance" such as Social Security, Medicare, food stamps, and welfare benefits would not be affected. However, there were questions about how the administration would define "assistance provided directly to individuals."
The acting head of the Office of Management and Budget, Matthew J. Vaeth, stated that the money would be put on hold while the Trump administration reviewed grants and loans to ensure alignment with the president's priorities, including ending diversity, equity, and inclusion programs. The freeze on funds was expected to impact a broad range of nonprofits and potentially halt vital public programs that serve millions of Americans, including food assistance, housing, mental health services, and more.
Catholic Charities USA and other organizations urged the Trump administration to reconsider the freeze, arguing that it would cause significant harm to those who rely on these services. A judge temporarily blocked the freeze on the same day it was announced.
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Catholic Charities USA's tax exemption case
Catholic Charities USA is a 501(c)(3) coordinating body that supports about 170 social service efforts across the United States, serving several million people annually. It was launched in 1910 by the president of Catholic University in Washington, D.C., who invited Catholic clergy and laity to gather on his campus. The organization has historically been involved in political debates and advocacy for government activism.
In 2025, Catholic Charities was involved in a tax exemption case in Wisconsin, where the state's highest court ruled that the organization must pay unemployment taxes since its work was primarily secular and did not involve religious teachings. Catholic Charities appealed to the Supreme Court, arguing that the First Amendment prevents the state government from interfering in the church's decisions about structuring its service entities. They asserted that their charitable work, which serves people of all religions without proselytizing, is rooted in the Catholic Church's teachings.
The Supreme Court unanimously ruled in favor of Catholic Charities, stating that Wisconsin's tax decisions created an advantage for more overtly religious groups, violating the First Amendment's requirement for the government to maintain "neutrality between religion and religion." The Court's decision could have broader implications for how states and the federal government consider tax exemptions for religiously connected organizations.
The case highlights the ongoing debate surrounding the role of religion in public life and the accommodation of religious beliefs by the government. It also underscores the complex nature of religious rights and tax exemptions, with potential ripple effects on religious organizations' tax-exempt status across the country.
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Funding sources
Catholic Charities USA (CCU) is an umbrella group for local charities throughout the United States that are affiliated with the Catholic Church. It is the largest social safety net provider in the country after the federal government. The group operates a wide variety of charitable social services, including food banks, foster care, adoption centres, immigrant detainee housing, disaster response, and workforce training.
CCU's operations are largely conducted through contracts with state and local governments, with about two-thirds of its annual spending coming from government sources. In 2021, Catholic Charities USA received over $2 million in federal grants, including $601,000 from the Department of Justice, $595,000 from the U.S. Department of Housing and Urban Development, $573,000 from the U.S. Department of Homeland Security, and $244,000 from the Corporation for National and Community Service. In 2013, CCU raised $24 million in contributions and grants.
In addition to federal grants, CCU has also received significant funding from local government contracts. This has led to the growth of Catholic Charities groups across the country, with the top 25 entities generating revenues of over $2 billion in 2023, a nearly 50% increase in four years. However, CCU has also faced criticism for its reliance on government funding, with some arguing that it has become "an arm of the welfare state".
In January 2025, the Trump administration announced a freeze on federal grants and loans to non-governmental organisations, including Catholic Charities, as part of its immigration policies. This decision was criticised by CCU, which urged the administration to reconsider the freeze, arguing that it would negatively impact the millions of Americans who rely on their support services. The Supreme Court has also supported Catholic Charities' exemption from certain state taxes, citing the First Amendment's protections for religion.
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Political advocacy
Catholic Charities USA (CCU) is an umbrella group for local charities throughout the United States that are affiliated with the Catholic Church. It is the second-largest social safety net provider in the US, after the federal government. CCU operates a wide variety of charitable social services, including food banks, foster care, adoption centres, immigrant detainee housing, disaster response, and workforce training.
CCU has received significant funding from the federal government. In 2021, CCU received over $2 million in federal grants, including $601,000 from the Department of Justice, $595,000 from the US Department of Housing and Urban Development, $573,000 from the US Department of Homeland Security, and $244,000 from the Corporation for National and Community Service. In total, about two-thirds of CCU's annual spending comes from government sources (more than half a billion dollars of federal grants alone).
CCU has a long history of political advocacy, dating back to its founding in 1910. It has involved itself extensively in political debates and has advocated for various forms of government activism and welfare programs. CCU supports mostly left-of-center political goals, including the expansion of welfare, government-subsidized housing, government subsidies and tax credits for families, universal pre-K education, expansion of food stamps, and liberal immigration policies. CCU has also advocated for the establishment of government welfare programs, public housing, and the Universal Charitable Deduction.
However, CCU holds conservative positions on some issues, such as same-sex couples and abortion. In 2006, the CCU requested an exemption from the same-sex requirements on religious freedom grounds, and in 2011, a local CCU group in Illinois ended its foster care and adoption services rather than serve same-sex couples. CCU has also been criticised for becoming "an arm of the welfare state" and for not using its funds for religious or "values-laden" activities.
In 2025, the Trump administration attempted to strip federal funds from CCU as part of its immigration policies. CCU urged the administration to reconsider, arguing that the millions of Americans who rely on their services would suffer due to the freeze in federal aid. A judge temporarily blocked the freeze, and the White House press secretary stated that the directive was not a "blanket pause" on federal assistance.
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Charitable services
Catholic Charities USA (CCU) is an umbrella group for local charities throughout the United States that are affiliated with the Catholic Church. It is the largest social safety net provider in the US after the federal government. CCU operates a wide variety of charitable social services, including food banks, foster care, adoption centres, immigrant detainee housing, disaster response, and workforce training.
CCU's charitable services are funded in part by the federal government. In 2021, CCU received over $2 million in federal grants, including $601,000 from the Department of Justice, $595,000 from the US Department of Housing and Urban Development, $573,000 from the US Department of Homeland Security, and $244,000 from the Corporation for National and Community Service. In total, about two-thirds of CCU's annual spending comes from government sources (more than half a billion dollars of federal grants alone).
CCU also raises funds from private donors. In 2013, CCU raised $24 million in contributions and grants. However, in 2018, CCU lost "significant" funding from donors after revelations of a wave of sexual abuse scandals within the Catholic Church.
In addition to funding, CCU has also been involved in political debates and advocacy work. It has supported mostly left-of-center welfare expansionist political policies, including expanding food stamps, raising the minimum wage, and more government subsidies for children. However, CCU holds conservative positions on same-sex couples and abortion. In 2006, CCU requested an exemption from the same-sex requirements on religious freedom grounds, and in 2011, a local CCU group in Illinois ended its foster care and adoption services to avoid being shut down by the state for discriminating against same-sex couples.
In January 2025, the Trump administration announced a plan to strip federal funds from CCU as part of its immigration policy enforcement. CCU urged the administration to reconsider, arguing that the freeze on funds would harm the millions of Americans who rely on their charitable services. A judge temporarily blocked the freeze, and the White House press secretary stated that the directive was not a "blanket pause" on federal assistance in grant programs.
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Frequently asked questions
Yes, the federal government does fund Catholic Charities. In 2021, Catholic Charities USA (CCU) received over $2 million in federal grants.
Catholic Charities USA (CCU) is an umbrella group for local charities throughout the United States affiliated with the Catholic Church. It is the largest social safety net provider in the US after the federal government.
Catholic Charities provides a wide variety of charitable social services, including food banks, foster care, adoption centres, immigrant detainee housing, disaster response, and workforce training.
Catholic Charities has a long history of working with the federal government. In 1980, the US bishops began partnering with the federal government to carry out refugee services under the US Refugee Admissions Program (USRAP). In 1990, CCU expanded its efforts into disaster relief. In 2007, CCU launched its War on Poverty program, aiming to halve American poverty by 2020.
Yes, Catholic Charities has faced opposition and criticism, particularly regarding its stance on same-sex couples and abortion. In 2011, the local CCU group in Rockford, Illinois, ended its foster care and adoption services to avoid being shut down by the state for discriminating against same-sex couples. In 2015, the American Civil Liberties Union filed a lawsuit to determine if CCU was providing access to contraception and abortion to immigrant children in their care. Additionally, CCU has faced criticism for becoming "an arm of the welfare state," with a significant portion of its budget coming from government sources.
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