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Senator Marsha Blackburn Questions DHS-ICE $86.9 Million Hotel Contract After Questionable IRS Tax Filings
Endeavors past IRS financial disclosures show that in 2018, it spent almost half of its funding on salaries. In 2018, the nonprofit brought in over $38 million in contributions and grants. IRS filings show that nearly $22 million or almost half of those contributions went to salaries. This raises questions if half of the $86.9 million in ICE contract proceeds will likewise be allocated toward employee and executive compensation instead of migrant services or housing. It is unclear if Endeavors has the experience to properly manage a contract of this magnitude. When Endeavors’ Chief Executive Officer Jon Allman was asked about specific details in the contract, he did not answer and instead deferred to ICE. It is unclear whether his nonprofit has ever previously managed a contract of this magnitude, housed a migrant population of this size or served vulnerable children without putting them at further risk. Facilities charged with caring for migrants have an unsettling history of sexual abuse. Unsettling sexual abuse scandals have rocked facilities charged with caring for migrant children. More than 4,500 allegations of sexual abuse and sexual harassment between 2015 and 2018 were reported to the Office of Refugee Resettlement, which oversees housing for unaccompanied alien children. 178 of the complaints were against staff at the shelters. Complaints ranged from “inappropriate romantic relationships between children and adults, to touching genitals, to watching children shower.” Other frequently cited violations included staff unqualified to manage altercations and deficient medical care. The ICE contract pays over a quarter million dollars to house a single family of four. As the current contract stands, the cost to taxpayers for housing 1,200 migrant families for six months is about $71,000 per person. For a family of four, that amounts to a shocking $284,000—enough to buy a small house. The full text of the letter can be found here or below. The Honorable Alejandro N. Mayorkas
The Honorable Tae D. Johnson
Dear Secretary Mayorkas and Acting Director Johnson: I write to seek more information regarding the $86.9 million contract that Immigration and Customs Enforcement (ICE) awarded the Texas-based nonprofit Endeavors to house about 1,200 illegal immigrant family members in hotel rooms over a six-month period.[i] As the mass influx of illegal immigrants floods our southern border and overwhelms public resources, there are troubling reports the Biden Administration is weighing the elimination of private immigration detention facilities, an action that could have devastating consequences on border security.[ii] President Biden’s reversal of the Trump Administration’s immigration policies has only intensified the Mexico-U.S. border crisis. U.S. Customs and Border Protection (CBP) reported 100,441 arrests and detentions in February 2021.[iii] March 2021 apprehension numbers are projected to be on pace with last month’s record levels.[iv] This April, Endeavors will begin service on its multi-million dollar contract to manage “family reception sites” for illegal immigrants at hotels in Texas and Arizona. In 2018, the nonprofit brought in over $38 million in contributions and grants.[v] IRS filings show that nearly $22 million or almost half of those contributions went to salaries. This raises questions if half of the $86.9 million in ICE contract proceeds will likewise be allocated toward employee and executive compensation instead of migrant services or housing.[vi] As the current contract stands, the cost to taxpayers for housing 1,200 migrant families for six months is about $71,000 per person. For a family of four, that amounts to a shocking $284,000—enough to buy a small house. Reports indicate the hotel sites will offer COVID-19 testing, social workers, medical care, food services, and case managers to aid with travel plans. But no further details have been provided. When Endeavors’ Chief Executive Officer Jon Allman was asked about specific details in the contract, he did not answer and instead deferred to ICE.[vii] It is unclear whether his nonprofit has ever previously managed a contract of this magnitude, housed a migrant population of this size or served vulnerable children without putting them at further risk. Unsettling sexual abuse scandals have rocked facilities charged with caring for migrant children. More than 4,500 allegations of sexual abuse and sexual harassment between 2015 and 2018 were reported to the Office of Refugee Resettlement, which oversees housing for unaccompanied alien children. 178 of the complaints were against staff at the shelters. Complaints ranged from “inappropriate romantic relationships between children and adults, to touching genitals, to watching children shower.”[viii] Other frequently cited violations included staff unqualified to manage altercations and deficient medical care.[ix]
Another Texas-based nonprofit, Southwest Key Programs, is a prime example of the negligent failures to vet federal contractors responsible for housing unaccompanied minors. An HIV-positive volunteer was charged with sexually assaulting eight minors at a Southwest-run facility and later sentenced to 19 years in prison for his crimes.[x] Hundreds of complaints were issued against the nonprofit throughout 26 shelters across the country.[xi] Approximately 20 violations at Southwest Key’s Texas shelters included conducting late, incomplete, or insufficient background checks for employees. DHS and ICE must provide commitments to assure Congress and the American public that Endeavors is up for the task of securely and efficiently housing illegal immigrants without resulting in waste or abuse of taxpayer dollars, or worse, harming vulnerable migrant children. Accordingly, please respond to the following questions no later than April 15, 2021.
Thank you for your attention to this important matter. I look forward to your reply. SectionsPoliticsTopicsIce, Illegal Immigrants, Internal Revenue Service, IRS, Marsha Blackburn, Southern Border, U.S. Customs and Border Protection, U.S. Department of Homeland Security, U.S. Immigration and Customs Enforcement, U.S. Senator, Washignton D.C. |
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