One of President Donald Trump’s first executive orders suspended refugee resettlement programs in the U.S. indefinitely. Last Friday, the State Department notified resettlement agencies that their grant funding was “immediately suspended.”
According to the Associated Press, the letter told agencies to “stop all work," "not incur any new costs" and "cancel as many outstanding obligations as possible.”
Families waiting to be reunified had their plane tickets cancelled despite following proper protocols. Refugees already in the U.S. lost access to a variety of services —including basic living expenses.
Nick Wuertz, director of refugee services at Lutheran Services in Iowa (LSI), said that roughly 80% of their budget comes from federal funding. Across Iowa’s resettlement agencies, more than 800 individuals saw their services cut — over half of them are children, according to Wuertz.
“The challenge is when people feel like they have to decide between, ‘Am I going to support Americans or am I going to support refugees?’ That's not a real decision that people have to make. You can actually invest in all of this, in the community.”USCRI Refugee Wellness Case Manager Leslie Olson
“We're continuing to show up each day, serve families and continue to provide services. We don't know yet if and how we'll be able to pay for some of those things,” Wuertz said.
Within 90 days, a report that determines if the refugee resettlement program is in the “interests of the United States” will go to the president’s desk, according to the State Department order.
What defines a refugee?
A refugee is someone who has been forced to flee due to persecution, according to the United Nations Refugee Agency. They cannot return to their home country without risking their life or freedoms. “Refugee” is a legal term that confers certain protections.
Wuertz said it is one of the most highly vetted immigration processes in the country.
“It's essentially the gold standard that we have in terms of an immigration program,” Wuertz said
The U.S. Committee for Refugees and Immigrants (USCRI) is an international nonprofit that helps refugees acclimate to their new surroundings. Leslie Olson, the refugee wellness case manager in Des Moines, said that the requirements to enter the U.S. are already strict.
Out of the millions of people displaced, less than 1% of refugees are approved to resettled in the U.S., according to Olson.
Some Afghan refugees are concerned they will be persecuted or killed by the Taliban because they fought on behalf of the U.S. The halt on refugee resettlement “stalls relocation flights, and hinders organizations from processing [Special Immigrant Visa] cases and providing critical travel loans,” NPR reported.

Wuertz said that their organization has not seen any indication that a refugee’s legal status will be affected by the funding suspension. Under current processes, in one year, a refugee in the U.S. can adjust their status to become a lawful permanent resident. In five years, they can apply for citizenship.
Temporary protection status (TPS) is different from refugee status. TPS is temporary while refugee status is permanent. The Trump administration revoked Biden-era deportation protections from Venezuelans, the largest group of people who receive TPS. Venezuelans would lose their right to work and be at risk of being deported once their status expires later this year.
What is a refugee resettlement agency?
Once a refugee is picked up from the airport, a resettlement agency helps them assimilate into American life in a 90-day program. Services offered range from providing a language interpreter, to acting as a guarantor in order to secure affordable housing.
Each agency receives a one-time federal grant of $1,650 per person to provide direct financial assistance for refugees.
“There are no other community services that people can be referred to. It’s really the only way that families have an opportunity to understand their new community, get on their feet, find jobs and get settled,” Wuertz said. “There really are no other options.”
Local partners are also impacted by the funding suspension, according to Wuertz. Housing partners and employers did not get to welcome the people they were expecting to fly in.
LSI receives letters of support from elected officials, health care providers and schools, among others.
“There are no other community services that people can be referred to. It’s really the only way that families have an opportunity to understand their new community, get on their feet, find jobs and get settled. There really are no other options.”LSI Director of Refugee Services Nick Wuertz
“The challenge is when people feel like they have to decide between, ‘Am I going to support Americans or am I going to support refugees?’” Olson said in a previous interview. “That's not a real decision that people have to make. “You can actually invest in all of this, in the community.”
What are the impacts of the refugee resettlement program?
“The U.S. has offered this program for many, many years, and at its core, it's a humanitarian program,” Wuertz said. “But it is well documented that the program, and the families that come through the program, contribute significantly to our local, state and federal economies.”
For small rural towns in Iowa, like Perry or Marshalltown, Olson said refugees and immigrants help revitalize the community. As towns continue to support an aging elderly population, immigrants are “willing to work, willing to buy houses, willing to invest in the community,” Olson said.
The American Immigration Council estimates that immigrants in Iowa paid $1.8 billion in taxes and accounted for $5.2 billion in spending power in 2022.
“I'm hoping there will be an openness to recognizing that [the funding suspension] is impacting brand new Iowans who are here, living in our communities, planning to stay and becoming contributing members as many before them have,” Wuertz said. “I’m hoping there’s a willingness on the part of the state, but as well as other Iowans who want to stand with us in supporting these families.”