DHS finds major violations at Catholic Charities Rio Grande Valley shelter

EXCLUSIVE – Catholic Charities of the Rio Grande Valley — the South Texas nonprofit long known for its migrant shelter run by Sister Norma Pimentel — has been suspended from receiving federal funds and now faces a rare six-year debarment after a Department of Homeland Security investigation revealed major grant violations, according to internal Department of Homeland Security (DHS) documents shared exclusively with Fox News Digital.

The action, taken by FEMA on behalf of DHS on Nov. 19 and 20, follows months of warnings and data reviews that auditors say revealed sweeping inaccuracies, large gaps in migrant records and large billings outside of federally authorized deadlines.

The suspension applies only to this South Texas affiliate, and not to Catholic Charities USA or any other chapter of Catholic Charities nationwide.

In a formal notice of suspension and proposed debarment, DHS officials accused the organization of submitting data on migrants so inconsistent that the agency could not verify whether many of the people it claimed to serve had ever appeared in DHS databases.

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Migrants line up outside the Catholic Charities Rio Grande Valley Chapter Humanitarian Respite Center in late 2022. (Jordan Vonderhaar/Bloomberg via Getty Images)

Investigators also alleged at least 248 instances in which the nonprofit billed the government for services outside the 45-day window that federal rules allow for migrants released from DHS custody.

FEMA concluded that the group provided assurance that its spreadsheets were accurate and compliant, statements the agency called “false” or “not entirely truthful,” according to the documents.

The proposed punishment is particularly severe. While federal exclusions typically last three years, DHS is seeking a six-year ban because of what it describes as a “pervasive” set of problems that span multiple programs and years.

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Sister Norma Pimentel of the Rio Grande Valley Catholic Charities Chapter is named in the DHS memo. (Leigh Vogel/Getty Images for Concordia Summit)

If finalized, the designation would cut the organization off from most federal funding streams and report it to the government’s awards management system, warning agencies and pass-through partners not to award new grants.

Catholic Charities of the Rio Grande Valley (CCRGV) now has 30 days to respond, submit documents or request a meeting to argue that it remains “currently responsible.” If not, the six-year ban would likely come into effect.

The DHS findings focus largely on migrant admissions data submitted by the nonprofit to justify millions of dollars in payments through FEMA’s Emergency Food and Humanitarian Shelter Program (EFSP-H) and its new Shelter Services program. FEMA said it asked the group to provide names, A numbers, countries of origin and proof of encounters with DHS for the people it claims to help. In response, the nonprofit told the agency that all migrants recorded A numbers and claimed its spreadsheets were accurate with a margin of error of 4.99 percent.

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An exterior photo of the Rio Grande Valley Catholic Charities Chapter with migrants walking past, late 2022. (Jordan Vonderhaar/Bloomberg via Getty Images)

Auditors said the reality was much different. In the sample sets reviewed by the agency, A numbers were frequently missing, truncated to four digits, or replaced with telephone numbers and other spurious entries. Error rates reached 21%, 26% and 42% across three spreadsheets, according to the documents. When FEMA tested 100 names, it could not find 61 in DHS systems.

Investigators also highlighted violations of the 45-day rule by the Rio Grande chapter. Under federal guidelines, NGOs can only charge migrants for food, lodging or transportation within 45 days of their release from DHS.

FEMA told the organization it found at least 248 cases where billing dates occurred after that window closed, raising concerns that federal dollars were used for services outside of what the law allows. The agency wrote that such activity could constitute “potential criminal activity,” although DHS has not said whether it plans to refer the case for criminal review.

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The documents further cite the nonprofit’s released audit for fiscal year 2024, which reported “significant weaknesses” in internal controls over federal awards, inconsistent admissions procedures and missing documentation for approximately 5% of sampled grantees. FEMA said corrective action plans were copied almost verbatim from year to year, without significant improvements.

Catholic leaders have recently pushed back against efforts to cut funding. This fall, Pope Leo XIV hailed Catholic Charities USA as “agents of hope,” praising its 168 agencies for their decades of work with migrants, refugees and the poor.

Pimentel, who heads the Rio Grande Valley branch, has been a national figure in the migrant ministry for years. Its humanitarian respite center once processed more than 1,500 migrants a day at the height of the mass crossings. She was publicly praised by the Vatican for her humanitarian work and spoke out against a return to the Remain in Mexico policy, saying families forced to wait in Mexico were suffering “tremendously.”

But his organization has also been a political focal point. Texas Attorney General Ken Paxton has filed lawsuits against several Catholic migrant shelters, accusing them of encouraging illegal immigration and operating illegal “stash houses,” including his lawsuit against Annunciation House in El Paso. Earlier this year, a judge blocked Paxton from impeaching Sister Norma in that separate case.

The suspension now places Rio Grande Valley operations under simultaneous federal and state control. It’s not yet clear whether other local shelters or municipal partners will be able to absorb South Texas’ caseload if the nonprofit ultimately loses federal funds. CCRGV currently serves far fewer migrants than in previous years, but remains one of the main reception points in the region.

DHS has not said when a final decision on exclusion will be made. The organization continues to operate during the suspension period but cannot receive new federal awards until the case is resolved.

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Fox News Digital has reached out to Catholic Charities for comment.

DHS told Fox News Digital that future exclusions may occur and that investigations are still ongoing.