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reductionmajor impact Budget PDF p. 26

Office of Refugee Resettlement Program

(Refugee Resettlement)

Department of Health and Human Services
Proposed Cut
$768M
% Reduction
75.0%
Action Type
reduction
Who Is Served

Refugees and asylees; resettlement agencies nationwide

Summary

The Office of Refugee Resettlement (ORR), part of the Department of Health and Human Services, helps refugees and asylees who have legally arrived in the U.S. get on their feet through time-limited cash and medical assistance, case management, English classes, and job-readiness services. The FY2027 budget proposes cutting $768 million from this program, a 75% reduction, which the administration justifies by pointing to a much smaller refugee admissions target.

Who Is Affected

The cut would hit refugees and asylees currently receiving or waiting for cash assistance, medical coverage, and resettlement case management, as well as the network of resettlement agencies nationwide that rely on federal grants to run these services. The refugee admissions ceiling was already slashed from 125,000 in FY2025 to just 7,500 in FY2026 — the lowest cap in U.S. history — and many resettlement agencies had their federal cooperative agreements terminated in February 2025, forcing layoffs and office closures even before this proposed budget cut.

What this cut would actually mean

If enacted, far fewer refugees and asylees would receive the short-term cash and medical assistance, English-language instruction, and job-placement help that has historically helped them become self-sufficient within their first months in the U.S. Resettlement agencies that have already lost staff and closed offices since 2025 would lose most of their remaining federal support, likely shrinking the country's capacity to resettle refugees for years even if admissions levels rise again in the future.

Sources

Administration's Stated Rationale

Reduced refugee admissions target results in lower resettlement support needs.