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Department of Homeland Security Suspends Catholic Charities of South Texas Amid Grant Violations
EXCLUSIVE – The Catholic Charities of the Rio Grande Valley has faced a significant setback as the agency has been suspended from receiving federal funds following a Department of Homeland Security investigation. This probe revealed serious violations related to grant management, according to confidential documents reviewed by Fox News Digital.
The Department of Homeland Security took action through FEMA on November 19-20. This suspension results from months of analysis and warnings that pointed to numerous inaccuracies in migrant records and significant billing irregularities outside permissible timeframes.
Importantly, this suspension impacts only the South Texas affiliate and does not extend to Catholic Charities USA or other chapters across the nation.
Findings of Inaccurate Data Submission
In a formal Notice of Suspension and Proposed Debarment, DHS officials articulated concerns that the organization submitted highly inconsistent migrant data. This situation raised doubts regarding the validity of the individuals served by CCRGV, as the agency found it challenging to verify their existence in DHS databases.
The implications of this action by the DHS have broader ramifications. If the suspension leads to a formal debarment, it could restrict the organization’s access to essential federal funding sources and enter it into the government-wide System for Award Management. This would caution other agencies and grant partners against issuing new financial support.
Allegations of Billing Outside Federal Guidelines
Further complicating the situation are allegations of at least 248 occasions where Catholic Charities provided services to migrants beyond the federally sanctioned 45-day timeframe post-release from DHS custody. These revelations highlight serious concerns that federal funds may have been misallocated.
FEMA reviewed the nonprofit’s submissions, where assurances about the accuracy of spreadsheets were given by the organization. However, these claims were subsequently deemed inaccurate by FEMA, indicating that the statements were either false or not entirely truthful.
Severity of Proposed Penalties
This proposed debarment is notably severe in its duration. Typical federal suspensions last around three years; however, due to the identified pervasive issues spanning multiple years and programs, DHS has recommended a six-year ban.
Such a lengthy period would substantially diminish the South Texas nonprofit’s ability to secure future funding, raising critical questions about its operational sustainability.
30-Day Deadline for Response
Catholic Charities of the Rio Grande Valley now faces a crucial 30-day window to contest these findings. During this timeframe, the organization will need to provide documentation or request a meeting to argue for its ongoing accountability. If they fail to act, the six-year debarment is likely to proceed.
Details of Federal Grant Violations
The DHS inquiry primarily focused on the migrant intake data submitted by CCRGV to justify millions in funding from FEMA’s Emergency Food and Shelter-Humanitarian program and the Shelter Services Program. When asked for detailed documentation including names, A-numbers, countries of origin, and proof of DHS encounters, the nonprofit asserted that all data was valid and accurate within a claim of only a 4.99% margin of error.
Nevertheless, audits indicate a different reality, revealing missing or incorrect A-numbers, as well as rates of errors as high as 42% in certain datasets. This discrepancy significantly raises the stakes for accountability.
Compliance with Federal Guidelines
Auditors emphasized the repeated infractions related to the 45-day billing rule. According to federal regulations, non-governmental organizations are permitted to bill for services only if they fall within this designated timeframe. FEMA’s analysis determined that payments made after this deadline raised alarms about potential misuse of federal resources.
Despite the seriousness of these findings, DHS has yet to determine if it will pursue criminal charges regarding the alleged misdeeds.
Further Scrutiny of Internal Controls
In addition to the billing discrepancies, the nonprofit’s recently released FY 2024 audit highlighted serious deficiencies in internal controls over federal awards. It indicated ongoing issues with inconsistent intake procedures and missing documentation affecting roughly 5% of cases reviewed. Alarmingly, FEMA observed that corrective action plans seemed to be reused without substantive improvement.
Response from Catholic Leadership
In light of these developments, Catholic leaders have voiced strong opposition to the de-funding initiatives. Prominent figures, including Pope Leo XIV, have praised the significant contributions of Catholic Charities USA, underscoring their role as vital agents of goodwill in supporting migrants and refugees.
Sister Norma Pimentel, a key figure at the Rio Grande Valley branch, has been recognized nationally for her humanitarian efforts. Previously, her center operated at capacity, processing up to 1,500 migrants daily. She has also faced political pressure owing to her organization’s controversial position in the immigration landscape.
Remaining Viable Amidst Increasing Scrutiny
The current suspension places Catholic Charities of the Rio Grande Valley under intense scrutiny from both federal and state authorities. The potential loss of funding raises concerns about how the organization will manage its operations moving forward.
DHS has not issued a timeline for when a final verdict on debarment might be reached. Meanwhile, the nonprofit can continue its operations during the suspension but is blocked from applying for new federal awards until resolution.
Fox News Digital has reached out for additional comments from Catholic Charities regarding this suspension. Meanwhile, DHS has indicated that further investigations may lead to additional debarments as ongoing inquiries progress.
