Iowa resettlement agency to end services due to Trump funding freeze
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Lutheran Services in Iowa (LSI) will lay off about 30 staff members and cease immigrant and refugee resettlement services next month due to the Trump administration's freeze on foreign aid, CEO Renee Hardman tells Axios.
Why it matters: Hundreds of people who recently arrived in the U.S. depend on the organization to help them assimilate to living in this country.
- They face additional challenges and more risks of being unemployed or becoming homeless without support, Hardman said.
Catch up quick: LSI is one of the state's oldest and largest nonprofit human service agencies for children and adults, with over 350 employees.
- The group has offered resettlement assistance through federal contracts for decades, helping people secure employment, housing and education.
- It helped federal and state officials boost refugee services in 2023, welcoming hundreds of people to DSM.
State of play: President Trump signed an executive order shortly after taking office in January that suspended refugees from entering the U.S. for at least 90 days to assess immigration policies that he says have resulted in an influx of migrants and states of emergency.
- Federal funding that reimbursed LSI resettlement costs was put on hold when Trump issued a stop order a few days later.
Friction point: The federal government has not reimbursed LSI for about $1.5 million in services it provided in 2024 and early January.
- Flights and housing plans for 104 refugees the organization had planned to welcome early this year have been canceled.
By the numbers: LSI's resettlement services budget is about $5.8 million a year and will end on April 25 if the federal government doesn't resume its contract with the organization.
- It currently serves over 400 people, with about half having been in the U.S. for less than 90 days — the most crucial time for assistance, Hardman said.
- Donations have helped sustain the program in recent months, Hardman said.
The big picture: Other resettlement agencies, including Catherine McAuley Center in Cedar Rapids, are also making cuts.
- Global Refuge, headquartered in Baltimore, announced about 400 layoffs this week.
What's next: LSI will continue to provide its other services, including assistance to people with disabilities.
- Nearly 400 people have registered to attend its annual event supporting the organization next week at the Iowa Capitol.