Taxpayer-Funded NGOs Under Scrutiny for Refugee Resettlement Practices
David Khait’s recent exposĂ© reveals significant flaws in how U.S. taxpayer dollars are allocated to non-governmental organizations (NGOs) that handle refugee resettlement. His investigation highlights a troubling trend: billions of dollars intended for refugee assistance being funneled through NGOs that often subcontract to third-party facilities. Many of these subcontractors operate from dilapidated locations, primarily aiming to enroll refugees in government welfare programs rather than providing necessary support for their integration into society.
Khait’s claims gained traction on social media, where he stated, “🚨 HOLY CRAP. David Khait just exposed that NGOs take BILLIONS in taxpayer dollars from the US for refugee ‘settlement,’ and then they subcontract the work out to third worlder-run buildings who get the migrants on welfare.” He described a Somali center operating in what he characterized as an “abandoned retail space,” asserting, “nearly ALL of them are solely focused on signing up migrants for taxpayer welfare.” This alarming revelation points to a critical disconnect between intended services and actual practices.
Footage from Khait’s visit confirms his disturbing observations. The Somali-run center appears woefully inadequate, lacking essential infrastructure for job training, education, or language instruction, which are keys to successful resettlement. Instead of programs aimed at fostering independence, the focus is on helping newcomers apply for welfare benefits such as the Supplemental Nutrition Assistance Program (SNAP) and Medicaid. This raises questions about the actual goals of these resettlement programs.
According to the U.S. Office of Refugee Resettlement (ORR), the federal government allocates over $2.3 billion each year for refugee assistance, with considerable funding flowing through large NGOs like Lutheran Immigration and Refugee Service (LIRS) and the International Rescue Committee (IRC). These organizations then distribute funds to community centers that cater to specific ethnic groups. However, critics argue that the system has moved away from its original mission—supporting refugees in becoming self-sufficient—toward creating a framework that may inadvertently encourage long-term dependency.
A striking statistic from a 2022 study by the Center for Immigration Studies reveals that 61% of refugee households access some form of welfare in their first five years in the United States, far exceeding the 30% rate for the general population. Such numbers highlight a potential crisis within this resettlement framework, whereby the system may not only fail to support refugees in becoming financially independent but may also strain existing welfare resources.
Questions surrounding the oversight of these programs were brought to light during congressional hearings in June 2023, where lawmakers sought to clarify how taxpayer dollars are being safeguarded against misuse. Rep. Paul Gosar (R-AZ) pressed ORR officials, asking, “How are we as a government ensuring that taxpayer money isn’t being used to promote generational dependency, rather than self-reliance?” While ORR officials cited regulations requiring annual performance reviews from contractors, they admitted deficiencies in conducting regular site visits, citing staffing deficiencies as a barrier to accountability.
Many of the largest NGOs depend heavily on government contracts. In fiscal year 2020 alone, LIRS reported $89 million in revenue, with $79 million stemming from government sources. This reliance complicates the designation of these organizations as “non-governmental,” suggesting instead that they may serve as extensions of federal policy, potentially mitigating the checks and balances typically associated with independent entities.
Khait’s footage adds to mounting evidence suggesting that some federally funded centers are not compliant with grant conditions. Federal guidelines stipulate that all resettlement programs should include orientation, employment services, and integration programs. However, Khait’s observations showed that these requirements were not met at the Somali center he visited, which he described as offering only fragmented space and an abundance of welfare forms. “All they had were partitions, folding tables, and forms for welfare. There was no infrastructure in place to help people become productive members of society,” he noted in his report.
Supporters of the current system argue that the process of integrating refugees can be complex, especially for those arriving with little education or work experience. The Biden administration’s decision to increase the refugee ceiling from 15,000 in FY2020 to 125,000 in FY2024 has further intensified scrutiny over these organizational practices as local infrastructures face mounting pressure.
Meanwhile, government audits offer little reassurance about the financial pathways of these funds. A 2021 report from the Government Accountability Office (GAO) criticized the Department of Health and Human Services for its insufficient performance assessment tools. “Without reliable performance measures and oversight, billions of federal dollars could be spent without a clear understanding of their impact,” the report highlighted, underscoring the lack of accountability in the system.
Local communities have voiced concerns about the increasing strain on social services. In Minneapolis, public housing waitlists have reportedly doubled over the past five years, attributed at least in part to the influx of new arrivals. Local aid organizations indicate that this surge has impacted resource availability for existing low-income residents, both immigrant and native-born. Economic data shows Minnesota expends approximately $210 million annually on public assistance programs for refugees and asylum seekers, raising alarms about the sustainability of these resources.
Khait’s investigative work has sparked a broader discussion about the effectiveness of NGO-driven refugee resettlement. His evidence raises critical questions about the accountability of taxpayer funding and whether such expenditures genuinely benefit newcomers to the United States. As calls for reform gain momentum among lawmakers and constituents, proposals are emerging that suggest implementing stricter audit requirements for subcontractors and reconsidering funding for organizations that fail to demonstrate successful outcomes in areas like employment and language proficiency.
Sen. Ron Johnson (R-WI) emphasized the importance of accountability, stating, “We must ensure that our refugee policies serve both the people we welcome and the taxpayers who fund these programs. Mismanagement and lack of oversight are not just issues of waste—they erode public trust.”
With Khait’s findings under examination, scrutiny over the handling of billions in refugee assistance could lead to significant changes in the operational framework for NGOs involved in resettlement. If validated, his insights may push policymakers to consider a restructuring of funding models that could better align with the goals of economic self-sufficiency and effective integration.
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