HHS Grants for Migrants: A $22.6 Billion expenditure

The Department of Health and Human Services (HHS) has come under scrutiny for its massive spending on grants for migrants between 2020 and 2024, totaling $22.6 billion. A watchdog report revealed that these grants included cash assistance for purchasing cars, homes, and even building credit for startup businesses. The report highlights how taxpayers have been left footing the bill for these expenditures, raising concerns about accountability and the effectiveness of such programs.

The Role of the Office of Refugee Resettlement (ORR)

At the center of this spending spree is the HHS’ Office of Refugee Resettlement (ORR), which has been criticized for its handling of migrant resettlement. ORR has been accused of acting as a “giant magnet” for migrants crossing the U.S. border, with auditors from OpenTheBooks pointing out that the office has drastically increased the number of noncitizens eligible for funding during President Joe Biden’s term. In fiscal year 2023 alone, over $10 billion was disbursed to grant-receiving organizations.

Controversies and Criticisms

The report also sheds light on the controversies surrounding ORR’s management of migrant children. Federal whistleblowers have raised alarms about the placement of unaccompanied migrant children with unvetted and sometimes abusive sponsors. OpenTheBooks CEO John Hart has criticized ORR for making a mockery of the nation’s vision of providing a safe haven for legal immigrants and legitimate refugees. He accused ORR of using nonprofit groups as ideological proxies to evade accountability and prop up an exploitative system.

Funding Distribution and Eligibility

The funding distributed by ORR has been allocated to various programs, including dollar-for-dollar matching savings plans for cars, homes, and college educations, as well as small-business loans and credit repair services. Migrants from countries like Cuba, Haiti, Afghanistan, and Ukraine, along with unaccompanied minors, were among those eligible for these grant programs. However, some programs were restricted to migrants who had been in the U.S. for several years, were employed, or earned around double the federal poverty level or less.

Nonprofits and Conflicts of Interest

Two of the top nonprofits receiving funds from ORR were Church World Services and the International Rescue Committee, which netted $355 million and $598 million, respectively, since 2020. Robin Dunn Marcos, a senior HHS official overseeing ORR’s program for unaccompanied minors, had previously worked for these nonprofits for over 30 years. OpenTheBooks raised concerns about a potential conflict of interest, although Dunn Marcos recused herself from approving funding for her former employers.

Broader Implications and Calls for Accountability

The report comes amid growing concerns about the handling of migrant-related expenses by federal agencies. For instance, FEMA faced criticism for spending $80 million on housing migrants in New York City hotels, though the funds were later clawed back. OpenTheBooks has called for greater transparency and accountability, questioning whether certain nonprofits received special treatment in the grant distribution process. The report underscores the need for a more balanced approach to immigration policies that prioritizes both compassion and fiscal responsibility.