Question. We have heard of the department's proposal for a "private resettlement program" or "PRP". What is the exact nature of the "PRP"? I would like to receive a detailed explanation.

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Answer. This proposal would provide the agencies that have access to incoming refugees with responsibility for transitional assistance and case management for RCA-type refugees that is, refugees who are not eligible for the categorical programs of AFDC, Medicaid, and SSI. We believe that the strong link between transitional assistance and case management would enable many refugees to gain earlier employment.

This restructuring would also realize significant cost savings in the approximately $32 million a year that States now spend on administering the current cash and medical assistance program and on overall management of their refugee programs.

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Finally, this restructuring removes from the States the burden of providing a special program of refugee cash and medical assistance. One State -- Kentucky terminated its RCA and RMA programs this February due to its perception of uncertainties of Federal funding and the delayed availability of funds appropriated on a delayed-obligation basis. Several other States threatened to withdraw from the program for these reasons but have not done so to date.

With respect to timing, the extensive consultations by the Office of Refugee Resettlement (ORR) with the States, national voluntary refugee resettlement agencies and their local affiliates, and refugee mutual assistance associations have led us to revise the proposed starting date of the Private Resettlement Program from October 1, 1992, to January 1, 1993. Thus, we would plan to continue to fund States for RCA and RMA during the first quarter of FY 1993.

Question. Does the department feel it can implement the "PRP" without additional legislative authority?

Answer. Yes, the current authorizing legislation provides sufficient authority for the PRP.

Question. Are you drafting regulations for implementing "PRP" at this time?

Answer. The PRP would be implemented through a grant announcement rather than through regulations. We are currently preparing such an announcement which describes the PRP and solicits applications for funding.

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Question. Will such regulations go through the normal Federal Register notice and comment period?

Answer. We are not proposing a regulatory change. Under the Department's grant rules, announcements seeking applications for discretionary grants are not required to go through a notice and comment period. However, we have consulted extensively with the voluntary refugee resettlement agencies, States, and refugee mutual assistance associations in developing plans for the program.

Question. What if one or both Houses of Congress forbid implementation of the "PRP"? What are the department's alternate plans? Alternate funding proposals?

Answer. The Department has no alternate plans or funding proposals. If Congress were to forbid implementation of the PRP, we would continue the program as it is currently structured unless Congress prescribed a different type of program.

Question. If the "PRP" is implemented and the department receives its requested $227 million or even the $322 million approved by House appropriators, please explain, specifically, how refugee medical coverage will be paid for?

Answer. ORR is considering various options for the best ways of providing health care with the funds requested for Special Medical Assistance.

We plan to use these funds for health services, health screening, and emergency medical care for newly arriving refugees who are ineligible for Medicaid. This funding would enable us to deliver medical coverage in a cost-effective manner during a refugee's first crucial months in the U.S. Preventive health services would continue to be a top priority under this new program.

The recent proposal by the Office of Refugee Resettlement (ORR) to restructure the
domestic resettlement program presents a compelling challenge to the voluntary
agendes. The proposal, as currently understood, would replace the special refugee
cash assistance programa now administered through state public assistance systems
with a new and enhanced government - private sector partnership which would
seek to improve the delivery of services to refugees. As part of this partnership,
national private voluntary agencies representing a broad spectrum of religious
ethnic, and humanitarian assistance constituendes, would work through their
community based affiliates toward the goal of early refugee employment and
durable self-sufficiency,

The program as envisioned by the private voluntary agencies would allow for the
provision of transitional income assistance together with extended case
management and employment services, all interrelated. This we feel, would greatly
improve the refugees ability to move more quickly to durable self-sufficiency.

Given adequate funding and appropriate medical coverage, we believe the concept
behind the ORR proposal is a new approach to resettlement which could achieve
long-term cost savings while simultaneously resulting in better resettlement
outcomes. Some of the potential benefits we would anticipate include the following:

Refugees served in the Voluntary Agency resettlement program could be
provided an array of closely coordinated services aimed at early
employment;

A substantial decrease in administrative costs as compared to existing
program parameters;

Increased administrative flexibility which would allow agencies to more
efficiently and effectively target available resources to meet the needs of
individual refugees,

Refugees served under the program would not get lost in large publie
assistance programs that were not designed nor have always responded
effectively in serving as transitional assistance programs;

Eligible refugees could be provided transitional assistance to meet housing,
food, clothing and other needs for longer than the same resources would
allow under the existing Refugee Cash Assistance program;

While we are pursuing the ORR initiative, we share the concern of our state and
local government colleagues that QRR's proposed budget level of $227 million,

InterAction is a membership association of U.S. private voluntary organizations engaged in international humanitarian altaris.
including reller, development, refugee assistance, publie policy, and global education.
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representing a 48% decrease from current spending levels, is unrealistically and irresponsibly low.
The voluntary agency resettlement program portion of this budget – $74 million – is
simply not adequate to support the community programs necessary to help newly
arrivod refugees achieve self-mufficiency. Initial estimates show that at a minimum, $120
million would be required to successfully implement the range of programs under the voluntary
agency resettlement program.

We also feel that the ORR proposal should not represent a shift of basic financial responsibility
from the US government to the private sector. We believe that good publie policy requires
adequate funding to ensure the success of programs aimed at early self-sufficiency. Working
refugees are tax paying, contributing members of American communities. The alternative is costly
long-term reliance on publicly funded cash assistance and social service programs, and the
exacerbation of other social problems.

We are also concerned that refugees have adequate medical coverage during their initial period of
resettlement. The current ORR proposal envisions private medical insurance at a budget
of $20 million. The necessary coverage cannot be obtained at that level of funding.

Each voluntary agency has a distinguished history in refugee resettlement, some extending back to
World War II and before. Our capacity to administer national programs of refugee assistance
through long established networks of community based affiliates, and in partnership with federal,
state and local governments and Mutual Assistance Associations, is a matter of public record. We
recognize that current budget realities require new thinking and new approaches to refugee
resettlement. The ORR proposal represents such new thinking and presents a conceptual
framework that we believe offers the most efficient and effective use of available resources.

Endorsed by:

The American Council for Nationalities Service

Church World Service, Immigration and Refugee Program

Ethiopian Community Development Counell, Inc.

International Rescue Committee

Lutheran Immigration and Refugee Service

The Tolstoy Foundation

The United States Catholic Conference, Migration and Refugee Services

World Ralia Corporation

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May 14, 1992

InterAction is a membership association of US. private voluntary organizations engaged in international humanitarian efforts.
Including relief. development, refugee assistance public policy, and global education.