The Southwest Key Program, a nonprofit that previously ran the largest shelter network for unaccompanied immigrant children, took $3 billion in taxpayer cash under the Biden administration and then hiked executive salaries. New York Post Report.
Southwest Key operated more than 20 facilities in Texas, Arizona and California.
“We contacted the DOJ for clarity regarding the dismissal of the major Southwest lawsuit.”
Based on data from the U.S. Department of Health and Human Services, between 2021 and 2024, the organization received billions of taxpayer funds to provide shelter services to foreign children who had crossed the country without parents or guardians.
During that same period, nonprofits significantly increased the annual salary of some tops.
According to tax returns, the organization's vice president, Veronica Delgado-Savage, was raised by nearly 10% from $297,792 in 2021 to $326,086 in 2023. Senior Vice President Gerald Rivera became Chief Program Officer, seeing 78% bumps from $312,791 to $555,998. HR Chief Jose Arroyo Davila's salary increased 114% from $308,694 to $661,298. CEO Anselmo Villarreal's Pay surged 139% from $491,642 to $1,174,551 in the same period.
The post reported that 12 other senior employees had been raised from 10% to 112%. Additionally, it noted that all major pay bumps, including executives, occurred during the first two years of former President Joe Biden's administration.
Meanwhile, the nonprofit organization was plagued by allegations that some of the staff members staying at the facility between 2015 and 2023 had children who had been sexually abused.
Southwest Key faces a lawsuit from the Biden Administration Department in 2024. The DOJ alleged that its staff “exposed unaccompanied alien children to their care due to illegal sexual harassment and abuse.”
Southwest Key did not respond to requests for comment from the post.
Last week, President Donald Trump's administration announced that it would force nonprofits to effectively shut down, and that the federal government would no longer be able to live in the facility. All the children in that shelter were relocated.
The administration's Department of Health and Human Services and the Department of Justice called it “a move to end sexual abuse and harassment.”
But at the same time, the administration plucked a federal lawsuit against Southwest Key.
As a result of the administration's actions, Southwest Key struck an employee.
Last week, the organization told Blaze News that the lawsuit had been dropped and that it was “pleasantly denied any claims related to child sexual abuse at our shelter and pointed out that “no settlement or payment is required.”
“At the same time, with an unexpected freeze on federal funding and an order to suspend at shelter for non-competitive minors, we must make the difficult decision to inform about 5,000 Southwest major program employees for the post-home study release program by the Refugee Resettlement Agency.
A spokesman for Sen. Chuck Grassley (R-Iowa) said, “I hate the vulnerable children being sexually abused under the Southwest Key watch. Sen. Grassley has contacted the DOJ for clarity regarding the firing of the Southwest Key lawsuit and is looking forward to a quick follow-up conversation.”
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