Catholic Charities loses a cash cow

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KNSI’s Matt Demczyk’s article is great news for people who think the State Department’s refugee resettlement program needs to be slowed to a trickle. According to the article, “Catholic Charities of St. Paul and Minneapolis announced this week that it will shift its focus to programs that combat homelessness and help at-risk children.” The article also said that “The Trump administration increased security screening requirements and decreased the annual refugee arrival ceiling. Fewer than 950 refugees arrived in Minnesota last year, compared with more than 3,000 in 2016.”

Volunteer agencies (like Catholic Charities and Lutheran Social Services), aka Volags, have used the resettlement program as a cash cow. The State Department pays Catholic Charities and LSS $3,300 to resettle refugees. The Volags are required to spend $2,300 on the refugees. Once the Volags have found the refugees a place to live, they get to keep $1,000 for their services.

Based on this information, Catholic Charities’ refugee resettlement revenue dropped from $3,000,000 in 2016 to $950,000 in 2017. A $2,000,000 drop in revenues will require Volags to rethink their business model.