Lawmakers demand answers over troubled company's $4M grant to house migrant kids

In a letter to Jonathan Hayes, acting director of the Office of Refugee Resettlement, Democratic Reps. David Price, or North Carolina, and Rosa DeLauro, of Connecticut, demanded answers about how the federal agency awards contracts to companies for the care of kids detained alone or separated from their families at the border.

They also want specifics about how much money New Horizon has actually received under the grant, a cooperative agreement with the agency for nearly three years of "residential childcare support services," and whether the government will attempt to recoup those funds.

"There's a question here of fiscal responsibility, but there are much larger questions of immigration policy and the way people are being treated – and whether it's worthy of our country," Price said in a phone interview Wednesday.

Price said he found it "troubling" that the federal agency would award a grant to New Horizon, especially after state regulators abruptly shut down one of its facilities in Lumber Bridge, N.C., last year. An audit by the N.C. Department of Health and Human Services found serious violations involving the boys in New Horizon's care, all of whom suffered from severe mental illness.

State DHHS officials specifically cited those violations when they denied the company's residential child care license. Without it, New Horizon can't house any kids at its planned facility in Laurinburg, N.C.

"Why on earth would the Department of Health and Human Services – to whose care these children are entrusted – why would they be contracting with an outfit like this?" Price said. "And why wouldn't they check the record?"

Price said the federal agency has now discontinued payments to the company.

The formal status of the grant, however, is unclear. Federal officials have for months refused to answer questions from WRAL News, saying only by email that there are "no additional updates" about the award.

Reached by phone on Thursday, New Horizon owner Barbara Brockington referred questions to her attorney, Knicole Emanuel. Emanuel has not yet responded to requests for comment after WRAL News reached out earlier this week.

Since he and DeLauro sent their letter Oct. 10, Price said he's received no response from ACF officials yet. But he's expecting answers in "days, not weeks."

"That's about as basic as congressional oversight gets – and we intend to exercise it," Price said.

Emanuel filed appeals over both issues on behalf of the company in late September.

In Laurinburg, where the company planned to open its facility for migrant children, local officials have watched New Horizon contractors replace HVAC units, install fencing and a construct a large playground on the property. The company has applied in late August for a city permit to install an alarm and closed-circuit camera system estimated to cost $125,000, records show.

Scotland County commissioners raised concerns with the company at a regular meeting just days after WRAL's original report published this summer. And at the city level, officials told the company in no uncertain terms that it lacks even the correct permitting to set up shop.

Scotland County Commissioner Tim Ivey, who reviewed Price's letter at the request of WRAL News, said he has similar questions about how the federal government vetted New Horizon – and what will happen to the money now.

"It's crazy that it would give them any money before they even got the license," Ivey said.

Since the company completed its fencing and playground projects, Ivey said there hasn't been a lot of additional activity at the property, which he said he doesn't expect to be housing children any time soon.

"Right now, we're under the impression it isn't coming – unless some act of god changes that," Ivey said.