From 2021 through 2024, under President Joe Biden's administration, the increase in border crossings prompted a significant surge in funding to the nonprofit, specifically aimed at sheltering and safely placing migrant children with U.S. sponsors.
However, during this period, the executive salaries at Southwest Key spiked conspicuously.
Alleged Mismanagement and Abuses at the Nonprofit
The nonprofit's president witnessed a 139% salary increase, escalating to figures around the $600,000 mark by fiscal year 2023. Salaries of other top executives, including the Chief Human Resources Official and the Chief Information Officer, also doubled, averaging $720,000, up from $420,000 in previous years.
Despite the injection of substantial federal funds, the nonprofit has been accused of mismanagement and severe misconduct. This includes allegations of sexual abuse of migrant children by employees and the misplacement of some children with traffickers.
A September 2020 report by the HHS Office of Inspector General criticized Southwest Key for improperly padding executive remunerations. Meanwhile, the organization has faced federal lawsuits, and in 2024, the DHS Inspector General disclosed that tens of thousands of migrant children were missing or released to potentially unreviewed sponsors.
Amid these escalating issues, HHS ceased placing children in Southwest Key facilities and commenced a critical review of its financial arrangements with the nonprofit.
Political Contributions and Government Reactions
During the fiscal expansions, records show some executives made donations to Democratic political campaigns, linking political contributions to periods of salary hikes. This intertwining of politics and nonprofit management has drawn criticism and governmental scrutiny.
Regarding the allegations, a spokesperson for Southwest Key Programs denied any claims related to child sexual abuse in their facilities. They emphasized, "There is no settlement or payment required," reflecting the organization's stance against the accusations.
House Homeland Security Committee Chairman Mark Green noted, "Not only did the Biden-Harris administration create the worst border crisis in American history — it empowered opportunistic nonprofits like Southwest Key Programs and Endeavors to profit off it. This Congress, the Homeland Security Committee has continued uncovering the Biden administration’s use of taxpayer funds to fuel its border boondoggle. We remain committed to ensuring the federal government is a good steward of taxpayers’ hard-earned money and will be vigilantly pursuing those who unduly profited at the expense of innocent Americans."
In contrast, HHS Secretary Robert F. Kennedy, Jr., reassured the public of the administration's determination to tackle human trafficking and related abuses. "For too long, pernicious actors have exploited such children both before and after they enter the United States. Today’s action is a significant step toward ending this appalling abuse of innocents," he declared.
The seriousness of the allegations led to a robust response from multiple government sectors, including the Department of Justice, which pursued a lawsuit against Southwest Key, detailing pervasive sexual abuse incidents stretching from 2015 to 2023. A spokeswoman for Senator Chuck Grassley expressed outrage, documenting the senator's demand for clarity from the DOJ concerning the dismissal of the lawsuit against Southwest Key.
The complications surrounding Southwest Key Programs underline a complex intersection of federal funding allocation, child welfare, and organizational accountability. As investigations continue and new policies are examined, the focus remains sharply on ensuring the safety and proper care of migrant children, alongside rigorous oversight of taxpayer money and its use in supporting such vulnerable populations.
