Washington, D.C. – After two months of prolonged delays, Lutheran Social Services of the National Capital Area (LSSNCA) received reimbursement for most of the nearly $4 million owed for services rendered in partnership with the federal government to support refugees in resettling with dignity in our communities.
The unprecedented delay in federal reimbursements compounded the harm caused by the Department of State’s January 24 stop work order, severely curtailing LSSNCA’s ability to provide essential services to newly arrived refugees. As a result, hundreds of refugees in the Washington, D.C. metro area, 75 percent of whom were Afghan allies, were at risk of food insecurity and homelessness.
“The past few months have been difficult for hundreds of refugees in our communities, including Afghan allies, who risked their lives to assist with U.S. missions,” said Kristyn Peck, LSSNCA CEO. “The support and essential services promised to them were pulled away overnight. Organizations like LSSNCA were left scrambling to fill the gap without Congressionally appropriated funds while facing a cash flow crisis created by frozen federal funds.”
Before receiving reimbursement, LSSNCA had spent over $3.7 million on federally contracted services. The funding structure of these contracts requires LSSNCA to incur expenses upfront and file for reimbursement. The stop work order and prolonged payment delays forced LSSNCA to lay off 75 staff members and furlough seven more.
“During this time of crisis, our community members, volunteers, and congregations stepped up to bridge the gap by donating time, resources, and funds to support our new neighbors,” said Peck. “We are deeply grateful for their generosity and ongoing support. Through these acts of kindness, our community has embodied the work of welcoming the stranger.”
While the reimbursement of nearly $3 million is a step towards stabilizing LSSNCA’s operations, outstanding payments remain. With the State Department’s termination of agreements with all resettlement agencies in February, families and individuals who recently arrived in our communities remain in difficult situations. Supporting refugees in resettling and rebuilding their lives has always been a partnership between the federal government – throughout Republican and Democratic administrations, resettlement agencies, and community members. The recent administration’s actions put this partnership and our legacy of welcome at risk.
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LSSNCA, a community-based human service agency, has served the local Washington, D.C. metro area since 1917. LSSNCA provides housing placement and rental support, food, workforce development, intensive case management, and legal and mental health services to community members who have been forced to flee life-threatening situations and are seeking to rebuild their lives in the United States.
