MCC reduces refugee services staff by 15 percent
President Trump’s executive order suspending refugee entry into the United States and the related freeze on federal funds for resettlement agencies that support new arrivals has forced the Minnesota Council of Churches (MCC) to implement an initial workforce reduction comprised of seven employees who staff the organization’s refugee reception and placement (R&P) team. The layoffs take effect Friday, March 21st.
On January 24, 2025, MCC received news from our federal partner, Episcopal Migration Ministries (EMM), that they would immediately end funding for our reception and placement program. EMM took that action because a federal stop work order ended their ability to reimburse MCC for approximately $1,584,000 in support for our R&P clients, and nearly $1,296,000 for staff salaries and operations throughout 2025. From January 24 through March 31, the anticipated loss for unreimbursed expenses will be nearly $200,000.
“Because MCC values the work done by the R&P team and understands the important client services they provide, we decided to continue operating the program after Jan. 24th although we knew we would not receive reimbursement funds to cover program expenses,” said MCC CEO Elder Suzanne Kelly. “Unfortunately, we have reached a point where we can no longer afford to support the refugee resettlement program and staff without federal reimbursement or substitute revenue.”
MCC has welcomed and resettled refugees in Minnesota for 40 years, since 1984. Over the last several years, MCC's resettlement program has been the largest in the state of Minnesota, and last year MCC welcomed and resettled nearly 1,000 individuals. We were prepared and already working to welcome 950 refugees in 2025 until the United States resettlement program was halted by Executive Order soon after the new presidential administration indefinitely halted oversees refugee resettlement on January 20th.
Exacerbating the devastating effects of that January order, our ability to support newly arrived Minnesotans who came prior to the halt has been severely threatened by recent and immediate pauses on federal grant and contract expenditures.
“The order freezing funding for U.S. refugee groups will absolutely make it harder for refugees already in the U.S. and in Minnesota to keep their housing, find jobs and adapt to their new lives here,” Kelly said. While we are encouraged that Minnesota has not eliminated or reduced state-funded contracts for organizations like MCC to help refugees transition well into Minnesota life, the hard truth is that we depend on federal dollars to amplify and sustain our work. Likewise, our partner the Episcopal Church has continued to fund non-resettlement programs at MCC even as they are having difficulties accessing funds for the federal contracts we administer in partnership.
Our work benefits people like Tilak Pokwal, whose family fled ethnic cleansing in Bhutan when he was 14. At age 32 he was able to leave the refugee camp in Nepal and come to Minnesota. Since Minnesota Council of Churches Refugee Services helped him get established, he has started four businesses including a restaurant and a health care provider that employs 33 people. He even helped convert a nightclub with a history of violence into a grocery store, changing a whole neighborhood for the better.
The difficult decision to lay off staff and phase out some services to our clients was made to ensure MCC’s long-term sustainability. Affected employees received four weeks’ notice and will be connected to outplacement services to support their transition.
Love of neighbor guides refugee resettlement work and Minnesotans have excelled at it. We urge all Minnesotans to:
to urge reinstatement of the U.S. refugee resettlement program.
Please also consider a donation to the Minnesota Council of Churches so that we can help recently welcomed refugees to continue experiencing success in Minnesota, and reduce harm caused by potential future funding reductions.