Los Fresnos shelter for unaccompanied minors closes, laying off dozens of workers

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. 

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