SAN ANTONIO – The federal government is withholding more than a third of what the City of San Antonio has spent on the recently closed Migrant Resource Center as it examines whether the city facilitated “illegal activities” at the San Pedro Avenue facility.
In a Wednesday memo to the mayor and council members, City Manager Erik Walsh said the Federal Emergency Management Agency has indicated it is withholding current and future payments for the Shelter and Services Program.
“While it states nothing specific to the City of San Antonio or specific activities at the Migrant Resource Center (MRC), it expresses concerns generally that Shelter and Services Programs have been used to engage in or facilitate ‘illegal activities,’” Walsh wrote.
>> Neighbors express relief over impending closure of Migrant Resource Center
The city has spent $35.9 million on the MRC, of which $13.2 million is still pending FEMA reimbursement.
The withheld funds appear to be part of the Trump administration’s wider review of organizations that provide temporary housing and other aid to migrants, suggesting they may have violated a law used to prosecute smugglers.
The Associated Press obtained a letter from acting FEMA administrator Cameron Hamilton that asks recipients of grants from FEMA’s Shelter and Services Program to provide names and contact information for migrants served and “a detailed and descriptive list of specific services provided” within 30 days. The letter says funding will be withheld during the review.
While the letter doesn’t explicitly threaten criminal prosecution, the letter raises concerns that recipients may have violated U.S. Criminal Code Section 1324, a felony offense against bringing people across the border illegally or transporting them within the United States. It also says executive officers must sign sworn statements that they have no knowledge or suspicions of anyone in their organizations violating the smuggling law.
In a statement emailed to KSAT by a city spokesman, Walsh said the city would provide FEMA with the “additional information” it requested.
“On Wednesday, the City received notice from FEMA that they are withholding payments for certain grants related to our work with the Federal Shelter and Services Program,” City Manager Erik Walsh said. “I shared this information with the City Council Wednesday. The FEMA letter states nothing specific to the City of San Antonio or activities at the Migrant Resource Center (MRC), which stopped accepting new arrivals on Feb. 3, 2025. Rather, the letter expresses concerns generally that Shelter and Services Programs have been used to engage in or facilitate ‘illegal activities.’ We understand that other entities have received similar letters. FEMA has requested that we respond and provide additional information, and we will do so.“
Erik Walsh, an Antonio City Manager
The city opened the MRC on San Pedro Avenue in July 2022, providing navigation and case management services, local transportation, food, commodities and phones/internet access for asylum seekers.
The city covered the lease, security, and janitorial and maintenance while Catholic Charities handled day-to-day operations.
The site stayed open, in part, because the federal government was covering its costs.
In the face of fewer and fewer arrivals, the city eventually shuttered the MRC on Feb. 25 and handed the leased property back to the owner on March 5.
Walsh notes in his memo that Catholic Charities had received the same letter about withholding funds.
The nonprofit also told the city that funding for Refugee Resettlement grants had been suspended, causing it to lay off 200 employees.
Catholic Charities spokeswoman Tara Ford did not immediately return a voicemail and email seeking comment.
The Associated Press contributed to this report.
