The USCCB spends more on refugee resettlement than it receives from the federal government, making the program financially unsustainable without federal support.

Vice President JD Vance criticized the bishops for allegedly resettling 'illegal immigrants' to secure federal funding, a claim that has been countered by the USCCB.

The U.S. Conference of Catholic Bishops (USCCB), one of ten national agencies providing refugee services, has faced significant challenges since being informed on January 24, 2025, of an immediate funding halt pending a review of foreign aid programs.

The lawsuit filed by U.S. Catholic bishops claims that the funding cut violates laws and the constitutional power of Congress over financial appropriations, as Congress had already approved the funding.

Pope Francis implicitly criticized Vance's remarks, emphasizing that Christian charity requires helping those in need beyond one's immediate circles.

Archbishop Timothy Broglio emphasized the Church's commitment to supporting vulnerable populations, including refugees, and stated that the funding cut hinders these efforts.

The lawsuit, filed in the U.S. District Court for the District of Columbia, names the Departments of State and Health and Human Services as defendants and cites a letter from the State Department informing the USCCB of the funding suspension.

The bishops argue that the government's actions threaten longstanding damage to the refugee resettlement program, which is crucial for helping refugees become self-sufficient.

President Trump had previously cut refugee admissions during his first term and resumed this policy upon taking office again in January 2025, leading to criticism from various quarters.

The funding suspension has led to layoff notices for 50 employees, which constitutes over half of the USCCB's Migration and Refugee Services staff, with further cuts anticipated at local Catholic Charities.

As of January 25, 2025, there were 6,758 refugees under USCCB's care eligible for resettlement aid, but they now face delays in achieving self-sufficiency due to these funding issues.

On February 18, 2025, U.S. Catholic bishops filed a lawsuit against the Trump administration over the sudden halt in funding for refugee resettlement programs, describing the action as unlawful and detrimental to both refugees and the largest private resettlement program in the nation.