In a letter to the faithful dated December 8, 2025, the Feast of the Immaculate Conception, Cardinal Dolan discussed the "very difficult financial decisions" the Archdiocese of New York has had to make to raise funds to compensate victims of clerical abuse. This includes "laying off staff and reducing our operating budget by 10%" and "working to finalize the sale of significant real estate assets." He ends the letter by saying that "earlier today" the parishioners of Immaculate Heart of Mary in Scarsdale were informed that their parish is declaring bankruptcy because of lawsuits related to multiple cases of child abuse by "a former lay employee at the parish.”
In case anyone was in doubt about one major reason for the closing of churches and schools and sale or rental of Church property in the Archdiocese of NY, Cardinal Dolan has cleared up the mystery. Astonishingly, he lays partial blame on the Archdiocese's insurance company.
To the number of victims of abuse by clergy or lay employees of the Archdiocese, and of the Archdiocese's mismanagement of and failure to contain the crisis in a manner befitting the shepherds of Christ's flock, can be added many more victims: the faithful turned out of their churches; the families who cannot send their children to Catholic schools because the schools have been closed and rented or sold; the people fired by the Archdiocese to trim its budget; the people who need services from which resources have had to be redirected; as well as the people, past and present, who made sacrifices to build and adorn Catholic churches, thinking they were leaving lasting legacies for generations to come. We must also not forget, and must pray for, all the good and faithful priests who have been harmed and discouraged by the scandals.
Below is the Cardinal's letter.
Photo above: Around 100 parishioners, preservation advocates, and East Village residents rallied on Sunday, December 11, to oppose the cessation of services and the potential sale of the Most Holy Redeemer Church.
December 8, 2025
Feast of the Immaculate Conception
Season of Advent
Dear Family of the Archdiocese,
The season of Advent is a time of anticipation and reflection, as the world prepares to celebrate the birth of Jesus. As the weather gets colder and the daylight grows shorter, the coming of Our Savior brings hope and light into a world too often plunged into darkness.
This darkness has cast a shadow even on our Church. As we have repeatedly acknowledged, the sexual abuse of minors long ago has brought shame upon our Church. I once again ask forgiveness for the failing of those who betrayed the trust placed in them by failing to provide for the safety of our young people.
Yet, as our faith teaches us, light will always conquer darkness. Our Church has worked with determination to strengthen and enhance procedures that ensure our children are protected, while also doing all in our power to bring healing and justice to victim-survivors and treat them with compassion and respect. That work is ongoing and will never cease.
Our goal has always been, and continues to be, to resolve expeditiously all meritorious claims, provide the maximum amount of compensation to the greatest number of victim-survivors and help them heal and move forward – a process that began in 2016 with the Independent Reconciliation and Compensation Program (IRCP). The archdiocese has now taken additional significant and necessary steps to bring peace and consolation to victim-survivors and their families. We have made a series of very difficult financial decisions, including laying off staff and reducing our operating budget by 10%. We are also working to finalize the sale of significant real estate assets, including the sale of the former archdiocesan headquarters on First Avenue in Manhattan earlier this year. When completed, we are hoping these transactions will net a total of more than $300 million – funds that can be set aside to provide compensation to survivors of sexual abuse.
As we undertook this work, we heard from victim-survivors looking to discuss resolving the remaining cases through a global settlement. A global settlement is one negotiated with the assistance of a third-party mediator who can help resolve cases more quickly and without the financial and emotional stresses of lengthy court proceedings, somewhat similar to what we were able to achieve through the IRCP. Last month, the archdiocese met with an ad hoc group of lawyers for a large number of victims-survivors to talk about a process that could achieve a global resolution. At that meeting, both sides agreed to engage retired Judge Daniel J. Buckley as a neutral mediator, the individual who successfully helped negotiate a global settlement with the Archdiocese of Los Angeles and more than 1,000 victim-survivors. We have also retained Proskauer Rose LLP and FTI Consulting as our legal and financial advisors. Their expertise will help us identify a solution that delivers the greatest possible compensation to victim-survivors while allowing the Archdiocese to continue its vital ministries for the good of our parishes, families, and communities.
Our efforts at resolving cases to support victim-survivors continue to be complicated by the ongoing legal struggles with Chubb, the archdiocese’s longtime insurer. For many decades prior to 2000, the Archdiocese of New York purchased from Chubb Insurance Companies general liability insurance coverage, including coverage for sexual misconduct claims, for itself and the parishes, schools and archdiocesan charitable organizations. Despite accepting millions in premiums from the archdiocese, Chubb has steadfastly refused to honor the policies it issued.
It is my hope and prayer that we can all work together to achieve a global settlement and provide victim-survivors with the most financial compensation possible to help heal these wounds.
You should also know that earlier today parishioners at Immaculate Heart of Mary Parish in Scarsdale – one of the parishes in the archdiocese most often named as a defendant in CVA cases due to alleged abuse by a former lay employee at the parish – learned that their parish has declared bankruptcy, the only financial option available to them due to the prospect of imminent court proceedings.
Please join me in praying for the victim-survivors, their families and all who have experienced the horror of abuse. It is my heartfelt prayer that together as a family of faith we may experience healing, hope and light this Christmas season.
I will keep you posted.
With prayerful best wishes for a blessed Advent and a joyous Christmas to come, I am,
Faithfully in Christ,
+ Cardinal Timothy Dolan
Timothy Michael Cardinal Dolan
Archbishop of New York