Catholic Relief Services (CRS), the largest recipient of USAID funding, is bracing for significant reductions following the Trump administration’s decision to freeze foreign aid and restructure government spending. With 50% of its $1.5 billion budget coming from USAID, CRS is preparing for mass layoffs, office closures, and project terminations worldwide.
Founded in 1943 by the U.S. Conference of Catholic Bishops, CRS initially focused on helping World War II survivors in Europe. Over the decades, it expanded its efforts to assist refugees, disaster victims, and impoverished communities in regions such as Syria, Ukraine, and the Congo. The charity provides food, shelter, and essential supplies to displaced families, operating under its mission to “assist the poor and vulnerable overseas.”
Despite its faith-driven mission, CRS now faces an uncertain future. President and CEO Sean Callahan informed staff via email on February 3 that major budget reductions are inevitable.
“We anticipate that we will be a much smaller overall organization by the end of this fiscal year,” Callahan wrote.
The National Catholic Reporter revealed that cuts will impact all divisions and departments, with some projects already being shut down in anticipation of the financial shortfall.
The closure of USAID follows an investigation by the Department of Government Efficiency (DOGE), which uncovered significant waste and mismanagement within the agency. While some projects were deemed legitimate, the Trump administration determined that excessive spending and lack of oversight justified freezing funds until a full audit could be conducted.
USAID has now been moved under the Department of State, where funding decisions are being reassessed. This shift has halted financial support for numerous global aid organizations, including CRS.
Former USCCB official Stephen Colecchi condemned the funding freeze, calling it “haphazard and irresponsible.”
“To target this tiny portion of the federal budget in such a reckless way will cost people their lives and livelihoods,” he stated.
CRS, headquartered in Baltimore, Maryland, operates in Africa, Asia, Latin America, and the Middle East. In response to the crisis, the organization has scheduled an emergency briefing on February 6 to discuss the next steps.
While Trump’s decision to rein in foreign aid spending aligns with his broader push for fiscal responsibility, the humanitarian impact of these cuts remains a growing concern.
