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No more rent money: Refugee agencies scramble to understand what Trump’s new ban means

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Refugee service organizations are heavily dependent on private donors for funding after President Donald Trump signed a stop-work order for foreign assistance Friday directing them against using federal aid to help clients resettle.

The action was felt across numerous federal agencies that work in foreign services and resulted in layoffs. Such an action has the potential to heavily impact refugees who have arrived in the US within the last 90 days. During that time, nonprofits provide housing, cash and food assistance, childcare, and other services aimed at putting clients on a path toward stability.

For the Integrated Refugee and Immigrant Services (IRIS) in New Haven, Connecticut, the order meant losing $3m in funding it expected from the federal government this year.

About an hour after the order was issued, the group eliminated a team tasked with supporting sponsors welcoming refugees to the U.S.

Maggie Mitchell Salem, the organization’s director, told The Independent that the group will continue staff reductions this week but said the charity’s lights will stay on for now.

“We don’t turn off,” said Salem. “We must somehow manage to avoid shutting our doors and honoring our commitment to our clients.”

In the immediate future, her clients won’t have access to emergency rental assistance beyond 90 days and will face longer wait times as staff members work to return their calls.

“All of this is happening at a speed that is unsettling and without enough information,” said Salem of the recent administration decisions.

People walk along the beach next to a tent refugee camp for displaced Palestinians in Deir al-Balah, central Gaza Strip, Monday, December 30, 2024 (Copyright 2024 The Associated Press. All rights reserved.)

Last week, Trump issued an indefinite pause on the admission of refugees into the U.S. until such time their admission aligns with his agenda. The decision applies to Afghans who assisted American military efforts and were given Special Immigrant Visas. Refugees undergo extensive vetting before they’re cleared for travel to the U.S.

Trump’s move impacted charities like Salem’s that rely on federal funding to cover operational costs. Federal funding is reimbursed after charities accept clients. Last year, the country took in 100,034 refugees. Advocates are skeptical they’ll welcome additional clients this year following Trump’s executive order, though legal challenges are expected.

Salem’s charity expected to resettle 800 refugees this year but only took in 200 before the executive order. The group has paid rent for the 200 refugees but it’s not known if all of the funds will be reimbursed.

As a result, groups like Salem’s are seeking out other sources of funding to cover the bulk of the cost. Resettlement groups receive about $3,000 per client which goes toward three months of living expenses.

Salem wants to continue assisting clients however she can once that period ends. Refugees are eligible for state funding up to five years after they arrive in the U.S.

“We’re not going to stop supporting them,” Salem asserted while anticipating a total cut to federal funding over the next four years. “How we’re able to provide that support is going to be challenging.”

Jeffrey Thielman, president and CEO of the International Institute of New England, plans to serve 10,000 clients across all services this year. In addition to refugee programs, the organization provides English language learning, employment support and skills training to people across the region.

He’s concerned that new arrivals could go without housing or food assistance but said he’s reaching out to private donors to ensure that doesn’t happen.

“I’m telling everybody: ‘I want to take a breath. We’re not making any dramatic moves, and we’re waiting to see how this all plays out over the next few days or weeks,’” said Thielman.

His organization hasn’t been forced to make any employee cuts and can support its current number of clients, but those funds are now coming from alternative sources. Thielman believes he can still bill the federal government for administrative costs up until January 24 but not beyond.

The rest is still unknown.

“The Trump administration right now is the train causing confusion and delay,” Thielman added.

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