Dozens of employees were laid off at a Los Fresnos shelter for unaccompanied migrant children after the non-profit provider’s federal government contract expired, according to the Texas Workforce Commission’s copy of a WARN letter.
Phoenix-based nonprofit Chicanos por La Causa, operating as CPLC Texas Inc., was awarded the $17.3 million contract by the U.S. Department of Health and Human Services’ Office of Refugee Settlement in November 2022, according to USA Spending records. It expired on March 31.
The Magnolia House shelter was set up to serve two dozen children up to 17 years old, offering case management, educational services, health care, and referrals for legal services.
There were 56 workers laid off as a result of the contract expiring, which the non-profit described as a short-notice decision.
“We received an unexpected notification from the government that our contract for the operation of the facility will not be renewed,” officials said in the letter about the March 25 notification.
Officials at Chicanos por La Causa said the main reason they lost the contract was because there was reduced demand; fewer people were crossing the border into Texas and the services were not needed.
Read more: Harlingen shelter for migrant children lays off nearly 150 workers
Most Read
- Is SpaceX quietly building a data center at Starbase? Job postings offer clues
- 25 Mexican businesses eye McAllen expansion after city pitches U.S. market entry program
- SpaceX’s futuristic city of Starbase finalizes massive 7,100-acre annexation. Here’s what we know.
- McAllen metro keeps selling more homes as Brownsville-Harlingen market sees 17% drop through August
- Rio Grande LNG moves closer to getting even bigger at Port of Brownsville
Get the latest business news delivered to your inbox every morning for free.
Try 30 Days Free!
Get full access to award-winning journalism covering business, real estate, health care, economic trends, and the people shaping the Rio Grande Valley.
30 Days Free!
$9.95/month
Limited time offer
Subscription renews after your 30 day free trial at $9.95/mo.
Included Benefits
- Unlimited access to all articles
- Daily business news and analysis
- Subscriber-only content and features
Stories That Matter
- Texas A&M seeks contractors for new health education and research building in McAllen
- Beach Water Park files plans for $750K go-kart track project on South Padre Island
- Hundreds are vying for jobs in Brownsville. Here’s what jobseekers are seeing in the market
- Mission’s first Small Business Expo puts $25K on the line for local entrepreneurs
- McCoy’s gives $10K, tools to launch Mid-Valley construction academy
- UT Health RGV performs new digestive procedure for first time in the Valley
- TSTC bets on advanced manufacturing to meet RGV’s industrial boom
- Pharr’s cross-border business push earns international recognition
- Brownsville eases drought restrictions after nearly three years as Rio Grande reservoir levels improve
- Texas A&M’s $53.5M McAllen research center will tackle water, food security and Valley health