Southwest Key Programs, a nonprofit that previously ran the largest network of shelters for unaccompanied migrant children, took $3 billion in taxpayer cash under the Biden administration and subsequently hiked executives’ salaries, according to a New York Post report.
Southwest Key operated more than two dozen facilities in Texas, Arizona, and California.
‘Contacted the DOJ seeking clarity regarding its dismissal of the Southwest Key lawsuit.’
Based on U.S. Department of Health and Human Services data, from fiscal years 2021 through 2024, the organization received billions of taxpayer funds to provide shelter services to foreign national children who crossed into the country without a parent or guardian.
During that same period, the nonprofit significantly increased the annual salaries of several higher-ups.
According to tax filings, the organization’s vice president, Veronica Delgado-Savage, received a nearly 10% raise from $297,792 in 2021 to $326,086 in 2023. Chief information officer Andy Harper’s pay surged 198%, from $214,356 to $637,806. Geraldo Rivera, senior vice president turned chief program officer, saw a 78% bump, from $312,791 to $555,998. Human resources chief Jose Arroyo-Davila’s salary jumped 114%, from $308,694 to $661,298. CEO Anselmo Villarreal’s pay soared 139%, from $491,642 to $1,174,551, over the same period.
The Post reported that 12 other senior employees received 10% to 112% raises. It further noted that all of the major pay bumps, including the executives, occurred during the first two years of former President Joe Biden’s administration.
Meanwhile, the nonprofit was plagued with claims that some of its staffers had sexually abused children staying at its facilities between 2015 and 2023.
Southwest Key faced a lawsuit from the Biden administration’s Department of Justice in 2024 over the allegations. The DOJ argued that its staff had “subjected unaccompanied alien children in its care to unlawful sexual harassment and abuse.”
Southwest Key did not respond to a request for comment from the Post.
Last week, President Donald Trump’s administration effectively forced the nonprofit to shut down, announcing that the federal government would no longer send children to live at its facilities. All of the children in its shelters 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.”
However, at the same time, the administration pulled the federal lawsuit against Southwest Key.
As a result of the administration’s actions, Southwest Key furloughed its employees.
Last week, the organization told Blaze News that it was “pleased” that the lawsuit had been dropped and “strongly denied the claims relating to child sexual abuse in our shelters,” noting that there was “no settlement or payment required.”
“At the same time, due to the unforeseen federal funding freeze and the stop placement order on our shelters for unaccompanied minors and Home Study Post Release programs by the Office of Refugee Resettlement, we had to make the difficult decision to furlough approximately 5,000 Southwest Key Programs employees. This decision impacts staff and programs across our nation,” the statement read.
A spokesperson for Sen. Chuck Grassley (R-Iowa) told the Post, “It is disgusting that vulnerable children suffered sexual abuse under Southwest Key’s watch. Senator Grassley has contacted the DOJ seeking clarity regarding its dismissal of the Southwest Key lawsuit and looks forward to a follow-up conversation soon.”
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