On Wednesday, the Trump administration moved to dismiss a civil lawsuit against Southwest Key Programs, the largest provider of housing for migrant children, after federal officials announced they had removed all unaccompanied minors from its facilities.
The lawsuit, filed during the Biden administration, detailed accusations of sexual abuse and harassment spanning from 2015 to 2023. Southwest Key, which operates shelters in Texas, Arizona, and California, had received nearly $3 billion in contracts from the Department of Health and Human Services (HHS).
In a statement, HHS confirmed, “Out of continuing concerns relating to these placements, HHS has decided to stop placement of unaccompanied alien children in Southwest Key facilities,” and would review its grants with the organization. As a result, the Department of Justice dismissed its lawsuit.
The company, facing a funding freeze, furloughed 5,000 employees, explaining that this was due to the “stop placement order” and suspension of programs by the Office of Refugee Resettlement.
The 2024 lawsuit outlined shocking abuse, including allegations that a Southwest Key employee sexually assaulted three girls—ages 5, 8, and 11—at the Casa Franklin shelter in El Paso. It also claimed that another employee in Mesa, Arizona, exploited a 15-year-old boy for sex in 2020. Victims testified that they were warned not to report abuse, with threats of violence against themselves or their families.
Attorney Leecia Welch condemned the government’s dismissal, calling it “shocking” and expressing hope that the children would receive further legal support. At least two employees have been indicted on criminal charges related to the abuse.
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