The U.S. Department of Justice has decided to drop a lawsuit against Southwest Key Programs, a nonprofit that operates shelters for unaccompanied migrant children. The lawsuit, filed last year, alleged that employees of Southwest Key had sexually abused minors in their care. This decision follows the Department of Health and Human Services (HHS) halting the placement of children in Southwest Key facilities and reviewing its grants with the organization. All children previously housed in these shelters have been relocated.
HHS Secretary Robert F. Kennedy, Jr. described the move as a crucial step toward ending the exploitation of migrant children. “For too long, pernicious actors have exploited such children both before and after they enter the United States,” he said.
Southwest Key, based in Austin, Texas, is the largest shelter provider for unaccompanied minors in the U.S., operating 27 shelters across Texas, Arizona, and California. The Justice Department initially filed the lawsuit in July 2024, citing a pattern of “severe or pervasive sexual harassment” dating back to 2015. Allegations included sexual abuse, solicitation of nude photos, and inappropriate relationships between staff and minors. However, Southwest Key has strongly denied these claims, and no settlement or payment was required as part of the dismissal.
Following the lawsuit’s withdrawal, the organization announced plans to furlough about 5,000 employees, attributing the decision to a federal funding freeze. Reports indicate that Southwest Key had requested the case be dropped, arguing that it could interfere with President Donald Trump’s immigration policies.
The Justice Department’s reversal comes as Attorney General Pam Bondi prioritizes illegal immigration enforcement. Meanwhile, the National Center for Youth Law is seeking to intervene, urging a judge to delay the case’s closure for 30 days to allow for further legal action. The organization also appealed to Republican Senator Chuck Grassley, requesting that he press the Justice Department for an explanation regarding the dismissal.
Grassley’s office confirmed that he has contacted the Justice Department for clarification and is awaiting a response. Advocacy groups argue that the case’s closure could deny justice to children who suffered abuse in these shelters.