Will Federal Funding Cutbacks Spur the Catholic Church to a Mission Course Correction?

On February 6, 2025, President Trump issued a memorandum directing executive departments to reassess funding for Nongovernmental Organizations (NGOs). Many Catholic charities fear this directive could lead to significant cuts in federal funding for Catholic NGOs that provide aid and advocacy for immigrants, including undocumented individuals.

The memorandum instructs executive agencies to “align future funding decisions with the interests of the United States and with the goals and priorities of my Administration.” This move follows a series of executive orders aimed at defunding NGOs engaged in causes deemed misaligned with the administration’s “America First” philosophy, including those supporting illegal immigration.

The controversy surrounding USAID’s funding decisions has only intensified the administration’s determination to dramatically reduce financial support for NGOs whose activities do not align with its priorities. The Catholic Church has been drawn into this debate after reports that billions in federal aid have been channeled to immigrant assistance through Catholic organizations such as Catholic Charities and Catholic Relief Services. In fact, from 2013 through 2022, USAID awarded CRS a massive $4.6 billion in federal funds. The USCCB has received $236 million since 2008 to oversee the Unaccompanied Minors Act (UAC) Program and Catholic Charities affiliates received $213 million for the UAC Program.

As a result, many Catholic NGO leaders are very worried that federal funding will be sharply reduced, if not eliminated altogether. In response, organizations such as Catholic Charities USA and Caritas Internationalis have publicly criticized the administration’s directive. The real-world impact of these funding cuts is already evident—most notably with the U.S. Conference of Catholic Bishops (USCCB) recently laying off 50 employees from its Migration and Refugee Services office.

The debate over federal funding presents Church leadership with a difficult dilemma. Should they continue pushing back against government cutbacks, despite the shifting political landscape? With border enforcement tightening and mass deportations increasing, is there still a compelling case for maintaining federal support for Catholic immigration services? Or is it time for the USCCB to shift its focus away from immigration-related causes and realign its priorities with broader aspects of the Church’s mission? The debate over federal funding presents Church leadership with a difficult dilemma. Should they continue pushing back against government cutbacks, despite the shifting political landscape?Tweet This

Make no mistake—the Church is at a crossroads. Leaders must navigate political realities while discerning the best path forward. A significant disconnect exists between the USCCB’s emphasis on Migration and Refugee Services and the concerns of Catholics in the pews.

Catholic voters played a decisive role in Trump’s victory, including an unprecedented shift among Hispanic voters. Polls indicate that issues such as border security, inflation, and crime were high on their list of concerns. Meanwhile, Catholic voters overwhelmingly rejected the policies of President Biden—the first Catholic president since John F. Kennedy. Church leadership must take heed: if the USCCB continues prioritizing immigration services over the concerns of its faithful, it risks further alienation from Catholic voters.

The Catholic Church stands at a pivotal moment, requiring clear thinking and policies that prioritize human flourishing over political ideology. Emerging challenges—such as artificial intelligence, globalization, and the expansion of government power—demand a renewed commitment to principles that transcend partisan labels. The Catholic Church is facing a raft of current problems: dwindling Mass attendance, declining religious vocations, financial struggles, and difficulties evangelizing and engaging the youth, along with a myriad of other challenges. Church leadership needs a new vision—one focused on these pressing challenges here at home, rather than focusing on the plight of migrants and refugees.

At the heart of such a new vision is the Catholic social doctrine of subsidiarity, which teaches that political and social matters should be handled at the most local and least centralized level possible. The Catechism of the Catholic Church (Sections 1882-1883) underscores subsidiarity as a safeguard against the dangers of excessive government involvement in the affairs of the common man. Similarly, in his 1991 encyclical Centesimus Annus, Pope John Paul II warned that large, omnipresent governments threaten subsidiarity and the well-being of individuals and local communities.

The principle of subsidiarity stands in direct opposition to the Chruch’s entanglement with secular big-government and the various evils that result from that collaboration. In contrast, subsidiarity promotes the true common good—emphasizing family, life, liberty, and community over an ever-expanding state.

Church leadership is facing growing pressure from the Catholic faithful to reevaluate its priorities. A shift away from an overreliance on federal funding for immigration services is not just prudent—it is necessary. By realigning its focus with the needs of Catholics in the pews, the Church can strengthen its independence from secular influences and renew trust among its supporters.

If the USCCB embraces this pivot, Catholic laity will be far more inclined to step up and provide the financial resources needed to sustain the Church’s mission—filling the financial gap left by reduced government funding. This moment presents an opportunity not for retreat but for renewal—a chance to reaffirm the Church’s commitment to principles that support life, family, freedom, and true human dignity.