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Nonprofit under investigation after DOGE spotlight, millions in waste

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  • The Department of Government Efficiency says it has ended a government contract with Family Endeavors that will save taxpayers $215 million annually. DOGE said the Department of Health and Human Services paid the group millions monthly to operate empty facilities.
  • Family Endeavors has faced congressional scrutiny and investigations due to questionable government contracts, leading to concerns over misuse of taxpayer funds.
  • The Trump administration is canceling some Family Endeavors’ contracts while a U.S. Attorney investigates the issue.

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The Department of Government Efficiency (DOGE) recently highlighted the termination of a contract between the Department of Health and Human Services (HHS) and the Texas-based nonprofit Family Endeavors. DOGE claims that this cancellation will save taxpayers $215 million annually.

However, this contract cancellation is just the latest chapter in scrutiny surrounding Family Endeavors. A review of the partnership between HHS, U.S. Immigration and Customs Enforcement and the nonprofit reveals years of controversy, including investigations into the misuse of taxpayer funds.

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Former Biden official working for nonprofit

A former Biden administration official joined Family Endeavors in early 2021. Months later, the organization secured hundreds of millions of dollars in government contracts.

These contracts were awarded despite the nonprofit’s lack of relevant experience in providing the contracted services, according to an Inspector General’s findings.

Investigations and findings

The U.S. Department of Homeland Security’s (DHS) inspector general concluded in 2022 that millions of dollars were wasted due to the government contracts awarded to Family Endeavors.

The report specifically criticized ICE for granting a contract to the nonprofit despite its inexperience in handling such services. Additionally, the inspector general found that millions were spent on unused hotel space under the nonprofit’s contract with ICE.

A closer look at the contracts

An investigation by The Free Press found that 99.6% of Family Endeavors’ revenue comes from government contracts. Two contracts in particular, one worth $87 million and another valued at $529 million, were awarded as “sole source contracts.” This means they were given to Family Endeavors without a competitive bidding process.

Congress raised concerns over the timing of these contracts. Further concerns were raised after a former Biden administration official, Andrew Lorenzen-Strait, joined the nonprofit months before major contracts were granted. According to the House Oversight Committee, this raised potential concerns of impropriety.

“It appears that Family Endeavors won these contracts just months after hiring Andrew Lorenzen-Strait as Senior Director for Migrant Services and Federal Affairs. The size of the contracts awarded to Family Endeavors, the manner in which they were awarded, that firm’s lack of equivalent experience, the timing of Mr. Lorenzen-Strait’s hiring, and his connections to the Biden administration combine to raise serious concerns of potential impropriety.”

House Oversight Committee’s letter to HHS

DHS Inspector General’s findings

The DHS Inspector General’s investigation into these contracts uncovered that ICE did not adequately justify the need for a sole-source contract to house migrant families. According to the IG report, in 2021, $17 million was spent on empty hotel rooms, and ICE failed to meet the competitive bidding requirements outlined in federal regulations.

ICE, however, defended the sole-source contract by citing an “unusual and compelling urgency” due to increased migrant activity at the southern border.

U.S. attorney investigating Family Endeavors following DOGE find

While past contracts under the Biden administration faced significant scrutiny by Republican lawmakers, the current Trump administration is now moving to cancel some Family Endeavors’ contracts entirely, according to DOGE.

Homeland Security reposted DOGE’s latest finding and asked U.S. Attorney Ed Martin for further investigation. Martin responded, “Duly noted. We are on it.”

As of Thursday evening, Feb. 27, Family Endeavors has not responded to requests for comment from media outlets. If they do respond, we will update the news article.

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[Karah]

THE DEPARTMENT OF GOVERNMENT EFFICIENCY – OR DOGE – RECENTLY TOUTED THE CANCELLATION OF A DHHS CONTRACT WITH A TEXAS NONPROFIT “FAMILY ENDEAVORS” THAT DOGE SAYS WILL SAVE 215 MILLION DOLLARS ANNUALLY.

BUT WHEN RESEARCHING **THAT CONTRACT –

BETWEEN DHHS AND THE NONPROFIT – WE FOUND THIS GOVERNMENT PARTNERSHIP HAS BEEN MAKING HEADLINES FOR YEARS.

A FORMER BIDEN OFFICIAL JOINED THE TEXAS NONPROFIT MONTHS BEFORE IT RECEIVED HUNDREDS OF MILLIONS OF DOLLARS WORTH IN GOVERNMENT CONTRACTS… BALLOONING ITS BUDGET.

IT LED TO CONGRESSIONAL INQUIRIES IN 2021 –

THAT LED TO INVESTIGATIONS – 

WITH THE DHS INSPECTOR GENERAL CONCLUDING IN 2022 – MILLIONS OF DOLLARS WERE WASTED AS A RESULT OF THE GOVERNMENT CONTRACTING “ENDEAVORS” –

AND FOUND ICE GAVE A CONTRACT TO THE NONPROFIT DESPITE THE GROUP HAVING NO RELATED EXPERIENCE.  

WHILE DOGE’S RECENT ANNOUNCEMENT PUT A RENEWED SPOTLIGHT OVER THE NONPROFIT BY NIXING ONE OF ITS GOVERNMENT CONTRACTS –

WE WENT BACK THROUGH OLD REPORTS THAT FOUND THE MISUSE OF MILLIONS SEVERAL YEARS AGO.

FIRST – HERE’S WHAT DOGE POSTED THIS WEEK – PHOTOS SHOWING EMPTY FACILITIES.

“A FORMER ICE EMPLOYEE AND BIDEN TRANSITION TEAM MEMBER JOINED FAMILY ENDEAVORS – IN EARLY 2021 – AND HELPED SECURE A SOLE-SOURCE HHS CONTRACT FOR OVERFLOW HOUSINGS FROM LICENSED CARE FACILITIES.

AS A RESULT, FAMILY ENDEAVORS INVESTMENTS GREW FROM 8.3 MILLION IN 2020 TO 520 MILLION IN 2023.

SINCE MARCH 2024, HHS PAID 18 MILLION A MONTH TO KEEP THE PECOS FACILITY OPEN DESPITE IT SITTING EMPTY.

WITH OCCUPANCY BELOW 20 PERCENT, HHS WAS ABLE TO TERMINATE THE CONTRACT – SAVING TAXPAYERS 215 MILLION ANNUALLY.”

AN INVESTIGATION BY THE FREE PRESS FOUND 99.6 PERCENT OF ENDEAVORS REVENUE COMES FROM GOVERNMENT CONTRACTS.

WITH TWO OF ITS GOVERNMENT CONTRACTS – ONE FROM DHHS AND ANOTHER FROM ICE IN 2021 – LEADING TO CONGRESSIONAL SCRUTINY AND INVESTIGATIONS.

ONE WAS WORTH 87 MILLION DOLLARS 

ANOTHER WAS WORTH 529 MILLION DOLLARS – WHICH AT THE TIME OF THE AWARD – WAS 12 TIMES ENDEAVORS’ ANNUAL BUDGET – ACCORDING TO THE HOUSE OVERSIGHT COMMITTEE.

BOTH WERE AWARDED AS “SOLE SOURCE CONTRACTS” –

MEANING IT WASN’T OPENED UP FOR BIDDING – IT WAS GIVEN TO ENDEAVORS WITHOUT COMPETITION FROM OTHER CONTRACTORS –

MONTHS AFTER A FORMER BIDEN OFFICIAL STARTED WORKING WITH THE NONPROFIT AS A SENIOR DIRECTOR FOR MIGRANT SERVICES.

THE HOUSE OVERSIGHT COMMITTEE WROTE –

“the size of the contracts awarded to Family Endeavors, the manner in which they were awarded, that firm’s lack of equivalent experience, the timing of Mr. LorenzenStraight’s hiring, and his connections to the Biden administration combine to raise serious concerns of potential impropriety.

THE DEPARTMENT OF HOMELAND SECURITY’S INSPECTOR GENERAL INVESTIGATED THE ALLEGATIONS –

WRITING IN ITS FINDINGS –

“ICE did not adequately justify the need for the sole source contract to house migrant families and spent approximately $17 million for hotel space and services at six hotels that went largely unused between April and June 2021. ICE’s sole source contract with Endeavors resulted in millions of dollars being spent on unused hotel space.

Government contracts must be awarded through an open competitive process, as outlined in the Federal Acquisition Regulation.

ICE records showed that Endeavors had no experience providing the services covered by the sole source contract, including hotel beds or all-inclusive emergency family residential services.”

IN RESPONSE TO THE INSPECTOR GENERAL’S REPORT –

ICE SAID THERE WAS AN “UNUSUAL AND COMPELLING URGENCY” FOR THE ENDEAVORS CONTRACT –

DUE TO AN INCREASE IN IRREGULAR MIGRANT FLOWS AT THE BORDER.”

ICE USED THIS EXCEPTION TO BYPASS THE REGULATION THAT REQUIRES A COMPETITIVE BID FOR GOVERNMENT CONTRACTS.

WHILE PAST GOVERNMENT CONTRACTS WITH ENDEAVORS – WERE SCRUTINIZED UNDER THE BIDEN ADMINISTRATION –

THE TRUMP ADMINISTRATION –

IS CANCELING SOME OF THEIR CONTRACTS ALTOGETHER – ACCORDING TO DOGE.

HOMELAND SECURITY REPOSTED DOGE –

ASKING U.S. ATTORNEY ED MARTIN TO INVESTIGATE –

TO WHICH HE RESPONDED “DULY NOTED. WE ARE ON IT.”

FAMILY ENDEAVORS HAS NOT RESPONDED TO MEDIA COMMENT AS OF THIS RECORDING.

THANKS FOR WATCHING OUR NEWS UPDATE.

FOR STRAIGHT ARROW NEWS I’M KARAH RUCKER.

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