September 28, 2026
Dear Colleague:
This Dear Colleague Letter (DCL) announces and provides an overview of the Office of Refugee Resettlement’s (ORR) initiative to promote greater state government involvement in initial resettlement activities for refugees and other ORR-eligible individuals. This DCL outlines the process through which ORR will select states to pilot a state-centric approach to resettlement and determine how to expand this approach in subsequent years. The pilot will include capacity assessment, including use of a tiered framework for placement and service delivery, and the administration of the Placement and Coordination (PC1) program. Instructions for submitting a Notice of Interest to be part of the initial pilot are included in Section III of this DCL.
Background
In 2026, responsibility for initial resettlement activities transferred from the U.S. Department of State’s Bureau for Population, Refugees, and Migration (PRM) to ORR through Presidential Determination No. 2025-14 Presidential Determination on Transferring the United States Program of Initial Refugee Resettlement. The Refugee Act, particularly 8 U.S.C. 1522(b)(7), establishes the statutory requirements for these initial resettlement activities. Prior to the transfer, the Department of State administered these activities through the Reception and Placement Program. Now ORR administers initial resettlement activities through the Program of Initial Resettlement (PIR).
Additionally, the Refugee Act, 8 U.S.C. 1522, requires consultation and coordination with states before refugees are placed in any locality. Executive Order 14163, Realigning the United States Refugee Admissions Program, reinforces this requirement by stating that, “[t]o the extent permitted by law and as practicable, State and local jurisdictions be granted a role in the process of determining the placement or settlement in their jurisdictions of aliens eligible to be admitted to the United States as refugees.”
Pilot Program
ORR’s vision for state-centric resettlement is to promote state involvement in refugee resettlement through a coordinated approach across all levels of government — federal, state, and local. Under a state-centric resettlement model, ORR retains legal authority for administering the national refugee resettlement program, while state governments serve as the responsible entity for refugee placement and service delivery to advance successful assimilation and self-sufficiency. The new pilot for state governments reflects ORR’s goal of facilitating and funding direct state involvement in refugee placement and initial resettlement.
The state-centric pilot includes:
- Capacity Plan — The state will assess and report to ORR their state’s capacity for serving ORR eligible populations through ORR funded services, including the components of the PC program, PIR, Intensive Case Management (ICM) and ORR Service Enrollment (ORSE), as described below.
- ORR will pilot a tiered approach to resettlement to support resource planning. The state will develop capacity across three service tiers: 1) Streamlined Support (for cases that are workforce ready), 2) Standard Support (for cases that need some support to be workforce ready), 3) Specialized Support (for cases that need additional resources upon resettlement, such as significant medical, disability-related, or child and family services). States should propose a minimum of 20 percent statewide in each tier, although locations within the state may develop specializations in service tiers. Capacity across tiers should be seen as a flexible planning tool. Depending on the caseload referred to ORR for initial resettlement, ORR may refer cases to states that fall outside of the planned tiered breakdown.
For PIR, projected capacity should be based on the ability to provide the services described below to new refugee and Iraqi and Afghan Special Immigrant Visa (SIV) arrivals. ICM capacity should be estimated based on potential ORR-eligible clients who will need more significant support to achieve or maintain self-sufficiency. ORSE, as explained below, will be provided to all ORR-eligible clients, so the projected capacity should include an estimate for non-refugee/SIV arrivals who you anticipate will be served in your state.
States should consider the following domains when drafting their proposed capacity plan: 1) education, 2) data systems, 3) health care, 4) housing, 5) labor markets, 6) public opinion/landscape, and 7) staffing.
- Statewide Engagement and Coordination — Building on existing state structures to meet the consultation requirements in ORR Policy Letter (PL) 25-03 states implementing the state-centric pilot will work to enhance these efforts with entities such as local municipalities, workforce development agencies, and health care and social service providers.
- PIR — As the PC program provider, the state reviews refugee case profiles as assigned by ORR, conducts outreach to identified U.S. ties when applicable, and secures case placement with Local Resettlement Providers (LRPs). Prior to arrival, the LRP conducts pre-arrival planning. After the refugee arrives, the LRP assumes responsibility for providing PIR services for 30 to 90 days after arrival in the United States, based on needs of the case and their degree of self-sufficiency. Examples of PIR services include airport pickup upon initial arrival, securing and furnishing housing, needs assessment and service planning, benefits applications, referrals, provision of cultural orientation, provision of direct assistance and other material support, and the documentation of provided services. Additional services for certain refugee minor children are also required. PIR services may be provided virtually and requires ensuring all recommended PIR services are delivered, ensuring the client receives required direct assistance, and liaising with the SRC and SRHC. Pilot states and their LRPs will operate in ORR’s Refugee Arrival Data System (RADS) for all PIR activities including 1) receiving information about refugee cases for placement, 2) making placement assignments and submitting placement confirmations, 3) documenting PIR case management services, and 4) submitting case level reports.
- ICM — As the PC program provider, the state serves ORR-eligible individuals with certain vulnerabilities that create barriers to assimilation and self-sufficiency for a service period of six to 12 months, or 12 to 24 months for individuals with disabilities or chronic illnesses. Examples of ICM services include regular case management, self-sufficiency planning, psychosocial support, group-based programming, and connections to external sources of assistance.
- ORSE — ORR plans to add a third element to the state-centric pilot, ORSE. ORSE will be a function of the PC program that will use a standardized intake, assessment, and referral process to serve as the single point of entry for ORR-eligible clients into ORR benefits and services. ORSE will allow all basic information required across ORR refugee programs to be collected once and shared amongst ORR-funded refugee program providers for tracking, coordination, and enrollment. Program-specific enrollments will occur separately within individual programs, as applicable. Pilot states and their LRPs will operate ORSE in ORR’s RADS database.
ORR currently funds nine nonprofit agencies to administer PIR and ICM services through ORR’s Preferred Communities Program. ORR will provide guidance for states participating in the state-centric pilot program to coordinate a transition of program administration with the nonprofit agencies currently administering PIR and ICM services through the Preferred Communities Program.
ORR seeks state government agencies to administer the components described above in their state beginning in Fiscal Year (FY) 2027. Some components of the pilot may begin in the second quarter of FY 2027 and others may begin later in FY 2027.
Funding Allocation Methodology
ORR has determined that this first phase of the state-centric pilot will be awarded via the Refugee Support Services (RSS) formula grant, consistent with regulation and policy. Certain associated administrative costs may be charged to the state’s Cash and Medical Assistance (CMA) grant.
Notification of Interest
State governments interested in participating in the state-centric pilot must provide ORR with a Notice of Interest from the Governor or his or her designee no later than November 2, 2026. The Notice of Interest must include the following:
- The state’s plan for statewide coordination and consultation, including with local municipalities, workforce, social service entities, and others as applicable.
- The state’s preliminary anticipated capacity for proposed PIR, ICM, and ORSE for FY 2027. States must include capacity across tiers 1-3, as outlined above. States should comment on the seven domains listed in the capacity planning section above.
- The anticipated date the state would be prepared to begin administering PIR, ICM, and ORSE if selected. Please include a proposed timeline with milestones for implementation.
- A description of the state's proposed approach to administering PIR, ICM, and ORSE, including whether services will be provided directly by the state, through contracts with LRPs, or through another service delivery model.
- A description of the state's proposed process for determining refugee placement locations and allocating cases among LRPs.
- The anticipated number and geographic distribution of placement locations within the state, including whether the state plans to provide statewide coverage through virtual PIR or other service delivery approaches.
- A description of the state's procurement or contracting process, including any anticipated legislative, procurement, or administrative actions needed before implementation.
- A description of the state's proposed approach to monitoring for compliance with ORR program requirements.
- Identification of a primary state point of contact for the pilot.
States should send the Notice of Interest via email to their Regional Representative, with a copy to DRAprograms@acf.hhs.govDRAprograms@acf.hhs.gov. The Notice of Interest should not exceed 2,500 words. Following receipt of the Notices of Interest, ORR may request additional information or conduct follow-up discussions with interested states to better understand their implementation plans, operational readiness, anticipated capacity, and ability to administer the PC program. ORR will also consider administrative and other available data, such as monitoring findings and report submissions, when evaluating a state for participation in the state-centric pilot.
Upon receipt of the Notice of Interest, ORR may engage with the state about anticipated PIR, ICM, and ORSE capacity for FY 2027. ORR may ask states to revise their proposed capacity.
If a state is selected for the state-centric pilot program, ORR will provide further instruction on submitting a FY 2027 State Plan Amendment describing how PC will be implemented. ORR will provide the state with copies of the PIR, ICM, and ORSE Program Guidelines. Please note that funding is contingent on the availability of federal funds. ORR anticipates that this pilot will be for the FY 2027 period.
State governments participating in the pilot must adhere to PC program requirements. Monitoring visits and pilot evaluation will be conducted to ensure compliance with ORR requirements and to gather information on the successes and challenges of PC program administration at the state government level. If selected for this pilot, states should expect to provide feedback and information to ORR for consideration towards development of state-centric resettlement going forward.
State governments interested in administering the PC program in future fiscal years but that are unable to administer the pilot program in FY 2027 should notify their Regional Representatives. ORR aims to expand the opportunity to administer the PC program to additional state governments as the state-centric resettlement initiative continues.
Sincerely,
Angie Salazar
Acting Director, Office of Refugee Resettlement
Administration for Children and Families
1. This PC (Placement and Coordination) program is distinct from the historical Preferred Communities (PC) program. All mentions of PC in this DCL refer to the Placement and Coordination program.