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Global Refuge is one of many nonprofits feeling the pinch of the Trump administration’s halt on federal grants and foreign aid.
The Baltimore-based organization supporting refugees and immigrants entering the United States recently laid off more than 50 employees, including 17 in Baltimore, according to president and CEO Krish O’Mara Vignarajah. The organization had a staff of 770 before the recent cuts.
President Trump signed an Executive Order on Jan. 20 that placed a 90-day stoppage on foreign aid. That has sent nonprofits like Global Refuge, previously known as Lutheran Immigration and Refugee Service, scrambling for funds.
Vignarajah is still trying to get reimbursements for work carried out under last year’s grant agreements.
Over the past 90 days, Global Refuge has helped 6,000 people across the country secure housing, access health care, learn English, enroll and find jobs. The organization considers these programs essential to people legally admitted to the United States through the country’s Refugee Admissions Program.
“It’s been incredibly difficult because it’s not just figuring out the future but ensuring that we receive reimbursement for work we did under legal agreements with the federal government. We never faced a scenario where we did not receive payments,” Vignarajah said.
“Obviously, it’s been devastating for the organization. It’s been devastating for the clients we serve, who are already here in the United States after going through an extensive years-long vetting process and who were legally admitted.”
The financial statement of Global Refuge shows almost $221.5 million in federal grants in the year ending Dec. 31, 2023. This freeze on federal funding is having a wide-ranging impact on local nonprofits, which have asked the federal government to reconsider.
“Our member organizations serve as vital lifelines in their communities, and this funding freeze could force many to scale back services or close their doors entirely,” Heather Iliff, President and CEO of Maryland Nonprofits, which represents more than 40,000 organizations, said in a statement.
“When a domestic violence shelter has to turn away survivors, or a suicide hotline has to put people on hold or reduce its hours, these aren’t just budget items on a spreadsheet — these are real people whose lives are at risk. We urge the federal government to lift the pause and to fully understand the essential services our communities depend on.”
Baltimore-based Catholic Relief Services has also felt the impact of cuts in USAID funding and told employees to expect layoffs, according to a report by Reuters. Sean Callahan, president & CEO of Catholic Relief Services, and an agency spokesperson could not be reached for comment.
Catholic Relief Services received $521.3 million in federal grants and agreements in the year that ended Sept. 30, 2023, according to its most recent financial statement. The agency is asking the public to lobby government officials to reinstate federal aid to humanitarian programs.
“New administrations usually review ongoing programs against their policy goals,” Catholic Relief Services said in a statement. “However, ceasing almost all lifesaving assistance has real impacts for human life and dignity — and on U.S. national interests.”
The freeze on funding has galvanized many nonprofit organizations that are dealing with similar challenges. However, the future remains uncertain.
“There is the bond of nonprofit organizations and faith-based groups who do this work as a matter of faith and not financial. Certainly, we are not backed by private equity,” Vignarajah said. “We are not sitting on massive endowments that give us any sort of cushion. These agreements are on a reimbursement basis, so there is little margin for error. There are a lot of us in that boat.
“The faith-based organizations feel particularly tied together because there have been eye-opening, unprecedented challenges against so many mainline religious traditions.”
Have a news tip? Contact Todd Karpovich at tkarpovich@baltsun.com or on X as @ToddKarpovich.