After Ali Hossaini, 34, immigrated from Afghanistan to Cleveland in 2022, he spent seven months in a program that taught him how to apply for jobs, open a bank account and manage money. It also helped him save to purchase a car.
Now, the federal funding for two crucial programs, including the one that helped Hossaini, will be terminated on Sept. 29 by the Office of Refugee Resettlement (ORR).
Refugees who come to the United States often seek assistance with purchasing a car or home, said Anna Chen, manager of communications and civic engagement at Asian Services in Action (ASIA) in Akron. Clients of ASIA also look to the nonprofit for support with financial literacy and assistance to purchase these necessities.
The Refugee Individual Development Account (RIDA) — the program Hossaini was in — and the Refugee Family Childcare Microenterprise Development programs both support migrants who are resettling in the U.S.
The ORR says it will no longer fund the grants because “they have determined that its continuation beyond fiscal year 2026 does not effectuate current program goals or agency priorities.”
The RIDA program at ASIA in Akron has assisted many refugees since 2021, Chen said, with the majority saving for vehicles. Others save for home purchases or to start a business.
The agency supports around 35 clients per year in Akron with the RIDA program, including those whose ethnicities are Asian American and Pacific Islander, with $87,500 in matching funds. Participants in the program can save up to $5,000, which typically includes matching funds from ASIA.
How these programs help Akron refugees
In Akron, the average immigrant who resettles here needs help with transportation to and from potential jobs.
“So, for a lot of our community members, they’re saving up for cars,” Chen said.
Chen said having reliable transportation is not only needed to get around the city but to improve an immigrant’s chances of being hired.
“It’s not just owning a car to have a car, it’s also to get better work or to have better outcomes for their family to have transportation.”
RIDA clients at ASIA learn financial literacy. This means building credit scores, opening bank accounts and generating income to save for a car, home or post-secondary education.
“For a lot of community members who arrive in the U.S., that often can be a barrier to things like home purchases and such because other countries in the world don’t have this credit score in the way that the United States does,” Chen said.
Other options for refugees
The need for programs like RIDA is strong in the community, Hossaini said, and many migrants have relied on its services. There are few other options for support.
ASIA helped Hossaini get a driver’s license, then find and purchase a car that he used in his delivery job. Now, he works as a translator at ASIA.
After learning about the termination of RIDA, Hossaini thinks that refugees will face difficulties without the program.
“I think it’s a big, I think, challenge or issue for all the refugees,” Hossaini said, “because that was a big support.”
“Everything is important, but the more important thing is the car, having a car,” he said. “So, if they’re not helping with the car, I think that’s a big problem … especially for the newcomers.”
ASIA is seeking solutions to continue funding the resettlement programs.
There are few options for immigrants and refugees to receive financial help as they assimilate in the U.S. Thet Win, assistant manager at ASIA, listed possible options for refugees seeking support when the grant programs end on Sep. 29.
Win said that ASIA will begin to refer clients to PNC Bank to participate in home buying education courses. Eligible clients will also have access to sustainability service, a separate program offered by ASIA in Akron.
The future of refugee resettlement programs
A lot of community members rely on the resources that nonprofit organizations offer, Chen said. More and more nonprofits with programs similar to RIDA are working with tighter budgets or ending all together.
“This is a trend,” Chen said. “So, we know this will not be the last one that will be terminated, and it wasn’t the last.”
ASIA is seeking funds from local organizations like the Summit County NEXT Program or Temporary Assistance to Needy Families cash assistance program.