Lutheran Services in Iowa lays off 28 employees amid funding freeze

Lutheran Services in Iowa (LSI) is set to lay off 28 employees across Des Moines, Sioux City, and Waterloo effective March 28, primarily due to a funding freeze resulting from the Trump administration's suspension of the U.S. Refugee Admissions Program. The layoffs include 17 positions in Des Moines, seven in Sioux City, and four in Waterloo, as the organization grapples with over $1.5 million in unpaid federal reimbursements for refugee resettlement services. This funding shortfall has led LSI to halt services for 191 individuals, including many minors, who rely on essential support during their transition to life in Iowa. LSI has been a vital provider of services for refugees and immigrants in the state, but the recent federal actions have put significant pressure on its operations. The organization is now appealing for community support to continue its mission amid these challenges. LSI's President and CEO was unavailable for immediate comment following the announcement of the layoffs.