Trump administration drops lawsuit against company over alleged abuse at its child migrant shelters

The Trump administration is dropping a civil lawsuit against the largest provider of housing for unaccompanied migrant children over allegations of repeated sexual abuse and harassment of minors in its facilities.

The dismissal was filed on Wednesday after the federal government announced they would no longer use services by Southwest Key Programs. The complaint, filed last year during the Biden administration, alleged a litany of offenses between 2015 and 2023 as Southwest Key Programs, which operates migrant shelters in Texas, Arizona and California, amassed nearly $3 billion in contracts from the Department of Health and Human Services.

“Out of continuing concerns relating to these placements, HHS has decided to stop placement of unaccompanied alien children in Southwest Key facilities, and to review its grants with the organization. In view of HHS’ action, the Department of Justice has dismissed its lawsuit against Southwest Key,” the HHS said in a statement.

Children who were still in shelters operated by the provider were moved to other housing.

Southwest Key Programs furloughed employees across the country. “Due to the unforeseen federal funding freeze and the stop placement order on our unaccompanied minor shelters and Home Study Post Release programs by the Office of Refugee Resettlement, we have made the difficult decision to furlough approximately 5,000 Southwest Key Programs’ employees,” the company said in a statement shared Tuesday.

According to allegations in the 2024 lawsuit, Southwest Key employees, including supervisors, raped, inappropriately touched or solicited sex and nude images of children beginning in 2015 and possibly earlier.

Children were warned not to report the alleged abuse and threatened with violence against themselves or their families if they did, according to the lawsuit. Victims testified that in some instances, other workers knew about the abuse but failed to report or concealed it, the complaint said.