The federal government has decided to withdraw a civil lawsuit against Southwest Key Programs, the nation’s largest operator of shelters for unaccompanied migrant children, which had alleged widespread sexual abuse by staff members.
The Department of Justice announced the dismissal on Wednesday, following a decision by the Trump administration to relocate all minors from the organization’s facilities and cease future placements. The move came alongside a broader review of all federal grants issued to the group, according to a joint release from the Departments of Health and Human Services and Justice.
HHS Secretary Robert F. Kennedy, Jr. described halting the use of Southwest Key as “a significant step toward ending this appalling abuse of innocents.”
In response, Southwest Key issued a statement expressing satisfaction with the DOJ’s decision, asserting it “strongly denied the claims relating to child sexual abuse in our shelters, and there is no settlement or payment required.” The organization had previously notified staff of furloughs after receiving a stop-placement order affecting all its housing programs for migrant children, calling it an “unexpected notice” that created difficulties.
Operating 27 residential shelters across Texas, Arizona, and California, Southwest Key has been a key player in housing unaccompanied minors. The lawsuit, initiated in July 2024, accused employees of sexually abusing and molesting children, citing extensive documented reports filed by the organization itself with the Office of Refugee Resettlement.
Among the allegations detailed in the case: a worker repeatedly assaulted a 5-year-old girl, an 8-year-old girl, and an 11-year-old girl at a facility in El Paso, Texas, in 2022, threatening to kill their families if they disclosed the abuse. At another Texas shelter, a supervisor was accused of repeatedly raping a teenage girl in 2019, with the victim only transferred after alerting a teacher. Additionally, a care worker in Arizona allegedly took a 15-year-old boy to a hotel room for sexual acts in exchange for payment, later facing criminal charges.
Despite the withdrawal, the National Center for Youth Law has petitioned a district court to postpone the dismissal, aiming to intervene on behalf of the victims. Johnathan Smith, the organization’s Chief of Staff and General Counsel, condemned the government’s action, stating it “erodes any semblance of accountability” and “emboldens those who would exploit and abuse vulnerable children.” He called it a betrayal of legal and moral duties to protect minors.