Catholic Charities of the Rio Grande Valley, long associated with Sister Norma Pimentel’s migrant shelter efforts, has been suspended from federal funds due to major grant violations and inaccuracies in migrant record-keeping, as revealed by a Department of Homeland Security investigation shared with Fox News Digital. The action, taken by FEMA on behalf of DHS, followed months of data reviews that uncovered significant discrepancies, including missing or inconsistent migrant data and billing for services outside the federally allowed timeframes. The suspension applies only to the South Texas affiliate, not to other chapters of Catholic Charities USA or nationwide. The proposed six-year debarment is a rare and severe punishment, citing the nonprofit’s alleged pattern of ‘pervasive’ issues across multiple programs and years, according to the documents.
During the investigation, DHS officials accused the organization of submitting migrant data so inconsistently that the agency could not verify whether many of the individuals reported served had ever appeared in DHS databases. Investigators also noted at least 248 instances where the nonprofit billed for services beyond the 45-day window allowed for migrants released from custody, raising concerns that federal funds were used for unauthorized services. The agency described such actions as potentially criminal, though DHS has not indicated plans for criminal review. The suspension now places the Rio Grande Valley operation under federal and state scrutiny, with uncertainty about whether other local shelters or municipal partners can absorb the South Texas caseload if the nonprofit ultimately loses federal funding.
FEMA’s findings also highlighted the nonprofit’s own fiscal reports, which noted ‘material weaknesses’ in internal controls and inconsistent intake procedures, including missing documentation for around 5% of sampled migrants. Despite corrective-action plans reported by the organization, FEMA noted that these were largely copied forward without meaningful improvements. Catholic leaders, including Sister Norma, have continued to advocate for the organization’s humanitarian efforts, with Pope Leo XIV recently praising the group for its decades-long work with migrants, refugees, and the poor. Sister Norma has also spoken out against a return to the Remain in Mexico policy, stating that families forced to wait in Mexico suffer ‘tremendously.’ However, her organization has faced political scrutiny, including lawsuits by Texas Attorney General Ken Paxton, who has accused similar shelters of encouraging illegal immigration.
DHS has not yet announced a final decision on the debarment, but the organization continues to operate during the suspension period, though it cannot receive new federal awards without resolving the matter. Fox News Digital has contacted Catholic Charities for comment, and DHS has stated that future debarments may occur while investigations remain ongoing. The incident highlights ongoing tensions between humanitarian efforts and federal regulatory oversight in managing migrant services and the financial accountability of nonprofits working with federal funds.