DOJ drops lawsuit against company over alleged abuse at child migrant shelters in Texas, other states

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McALLEN — The Trump administration moved to drop a civil lawsuit Wednesday against the largest provider of housing for migrant children over allegations of sexual abuse and harassment of unaccompanied minors, saying it also would no longer be using that company’s services.

The motion to dismiss the suit against Austin-based Southwest Key Programs was filed after the federal government announced it had moved all unaccompanied children to other shelters and would no longer be using that provider.

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.

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.

Among the accusations: One employee “repeatedly sexually abused” three girls ages 5, 8 and 11 at the Casa Franklin shelter in El Paso, with the 8-year-old telling investigators the worker “entered their bedrooms in the middle of the night to touch their ‘private area.’ ”

The lawsuit also alleged that another employee, at a shelter in Mesa, Arizona, took a 15-year-old boy to a hotel and paid him to perform sexual acts for several days in 2020.

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.

“DOJ’s lawsuit revealed horrific sexual abuse and inhumane treatment of children detained in Southwest Key shelters,” said Leecia Welch, an attorney who represents unaccompanied children in a separate case. “It’s shocking to me that the government now turns a blind eye to their own contractor’s actions. I hope the impacted children will have other legal recourse and support in healing from their abuse.”

At least two employees have been indicted on criminal charges related to the allegations since 2020.

The civil lawsuit had sought a jury trial and monetary damages for the victims.

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