Refugee Resettlement

The federal government helps to resettle refugees for up to 36 months after they enter the United States. This assistance can include cash payments and medical assistance. Between 1985 and 1992, federal assistance for refugee resettlement decreased and the time period for cash and medical assistance was reduced, while the number of refugees being admitted rose. This report discusses (1) the extent to which Department of Health and Human Services (HHS) funds to states for refugee cash and medical assistance went unused in fiscal years 1991 and 1992, (2) the cause of any residual surplus for HHS funds for such assistance in those years and GAO's views on the reasonableness of the cause, (3) whether refugees could have received cash and medical assistance for a longer period of time than they did, (4) GAO's views on the reasonableness of HHS' proposed changes to federal regulations on the eligibility period for cash and medical aid, and (5) the extent to which HHS matching funds to voluntary agencies were unused in fiscal years 1991 and 1992 and the explanation for any surplus. GAO also provides information on how HHS determined the eligibility period for fiscal years 1991 and 1992.

GAO found that: (1) HHS did not spend 4 percent of its FY 1991 appropriated funds for refugee cash and medical assistance and 7 percent of its FY 1992 funds, but it reimbursed states for their cash and medical costs with the unused funds; (2) HHS tried to avoid overspending for refugee cash and medical assistance by limiting the eligibility period, which resulted in some unspent funds at the end of FY 1991 and FY 1992; (3) in FY 1992, unspent funds were sufficient to extend the benefit period to 13 months; (4) HHS cannot predict the assistance program's funding needs because of uncertainties in estimating the number of refugees entering the United States and how many will qualify for benefits; (5) HHS has proposed a regulation that would allow it to change the eligibility period without having to follow rulemaking procedures and establish the methodology for determining the length of the eligibility period; (6) HHS should have more flexibility to adjust the eligibility period to reflect changes in available funds, refugee arrivals, and other factors, but it should avoid making frequent changes that could disrupt state assistance programs; (7) the proposed methodology is reasonable if the basis for estimating certain costs is reasonably determined; and (8) HHS did not spend 26 percent and 19 percent of matching funds available for voluntary agencies in FY 1991 and FY 1992, respectively, because one voluntary agency that received the most matching funds had fewer refugees to resettle than it anticipated.