Lutheran Services says federal pause in refugee resettlement has forced local layoffs and asks Sioux City council for letters of support

Lutheran Services in Iowa told the Sioux City Council on March 25 that a recent federal pause on refugee resettlement funding has disrupted local resettlement work, forced staff reductions and left the agency asking the council and community for written support to restore federal reimbursements.

The LSI representative said the administration’s executive order of Jan. 20 “halted and effectively paused refugee resettlement across the United States,” and that a Jan. 24 stop-work order cut off federal funding that LSI relies on to help newly arrived families. The representative told the council that “without federal reimbursement we will be forced to refer families to the federal welfare program and many will be at risk of becoming homeless.”

Why it matters: LSI said it has helped resettle more than 500 people in the Siouxland area since services resumed in 2022, and that most newly arrived adult clients become economically self-sufficient within about eight months. The organization said federal reimbursements totaling roughly $1,500,000, going back to December 2024, have not been paid to LSI and other providers, and several locally based LSI staff received notices last week that their positions would end if reimbursements are not restored.

LSI described how the pause affected families already en route: it said 104 individuals were booked to travel to Iowa when the Jan. 20 order arrived and that planned travel was canceled. The representative also said the agency had started 36 people in Siouxland just weeks before the pause and that the disruptions have already forced program reductions.

What LSI asked of the council: the nonprofit asked the council to consider writing a letter to federal officials urging restoration of the resettlement program and reimbursement of contracted services. Mayor Robert E. Scott said the council could not take formal action at the meeting because the request was not on the published agenda, but he invited LSI to share sample letters and materials for council review. The council directed staff to accept drafts submitted to the city (via Mr. Padmore) for consideration.

Council response and context: several council members thanked LSI staff and said they would be willing to send or endorse letters once they had a draft to review. One councilmember said the city could not act immediately because the item was not scheduled as an action item: "We can't make a decision today because it's not on the agenda," Mayor Robert E. Scott told the presenter.

Clarifying details and local impacts: LSI said it has helped place more than 200 employable adults into work in the region since services resumed, and it identified Brenda Harms as the local service manager for volunteer coordination and apartment setups. LSI said that early-childhood and foster-care programs were unaffected at this time. The representative said private donations and local support have allowed LSI to continue some work while it seeks reimbursement.

What happens next: LSI offered to provide sample letters and said it has already contacted federal offices and members of Congress. The council asked that any draft letters be routed to city staff for review; no formal council resolution or vote was taken at the meeting.