Bishop Edward Scarfenberger. / Credit: Photo courtesy of the Diocese of Albany
National Catholic Register, Dec 19, 2025 / 12:24 pm (CNA).
A retired New York bishop has filed for personal bankruptcy protection in federal court after a state jury verdict found him, along with other officials, personally liable for the collapse of a Catholic hospital pension fund that left about 1,100 retirees without the lifetime monthly payments they were expecting.
It’s not clear whether a Catholic bishop in the United States has ever previously filed for personal bankruptcy protection.
Bishop Edward Scharfenberger, 77, who served as bishop of Albany from April 2014 until his retirement in October, is seeking protection from creditors for his assets valued at between $100,001 and $500,000, according to a filing Tuesday in the U.S. Bankruptcy Court for the Northern District of New York.
The seven-page filing does not list the bishop’s assets but states that he has between 100 and 199 creditors and debts totaling between $1,000,001 and $10 million.
Last week, a jury found Scharfenberger 10% liable in a $54.2 million judgment in a civil lawsuit over the failed pension plan once provided by St. Clare’s Hospital in Schenectady, a Catholic hospital that operated from 1949 until 2008, according to The Evangelist, the diocese’s newspaper.
The verdict and judgment, issued Dec. 12, cover compensatory damages — the amount a court finds is owed to plaintiffs for harm they have suffered — but not punitive damages, which may be added in cases of recklessness, malice, or fraud. The bankruptcy filings by the bishop and another defendant in the state lawsuit over the pension plan failure forced a pause in a punitive damages hearing earlier this week, according to WNYT Channel 13 in Albany.
The National Catholic Register, CNA’s sister news partner, was unable to reach Scharfenberger before the publication of this story. A lawyer representing the bishop acknowledged a request for comment Dec. 17 but did not immediately provide one.
A rare personal bankruptcy
In recent decades, bankruptcies have occurred regularly in the Catholic Church in the United States. Between 2004 and November 2025, 39 of the country’s dioceses have filed for bankruptcy, almost all to protect assets from clergy sex-abuse lawsuits, as the Register reported last month. One of those is the Diocese of Albany, which filed for bankruptcy in March 2023.
But those diocesan cases were filed under Chapter 11 of the U.S. Bankruptcy Code, which allows a corporation, partnership, or sole proprietorship to reorganize and continue operating while developing a court-approved plan to repay creditors.
Scharfenberger filed under Chapter 13, which allows an individual with regular income who cannot pay debts to keep certain assets while working out a repayment plan.
“The rules in Chapter 13 permit a debtor to keep property and confirm a plan with payments to creditors based on the debtor’s ‘disposable income,’” said Marie Reilly, a bankruptcy expert and law professor at Penn State Dickinson Law, in an email. “If the debtor commits his disposable income to paying creditors for the term of a three- to five-year plan, he gets a discharge (forgiveness) of the unpaid balance.”
Reilly, who has researched several dozen diocesan bankruptcies for The Catholic Project, a lay initiative of The Catholic University of America in Washington, D.C., told the Register that the bankruptcy filing does not necessarily solve all of the bishop’s money problems.
“There are exceptions — some debts don’t get discharged. Creditors can object to the plan if it does not meet the statutory requirements,” Reilly said. “And, it is possible that the pension fund creditor may move to dismiss the bishop’s Chapter 13 case as having been filed ‘in bad faith.’”
$50 million shortfall
St. Clare’s Hospital was originally run by the Franciscan Sisters of the Poor. The Diocese of Albany maintains that it never owned the hospital and that the bishop of Albany merely provided “canonical oversight” to make sure the hospital met “its mission to serve all in accord with Catholic moral standards,” according to an August 2025 statement from the diocese.
Last week, the jury found that the Diocese of Albany has no liability for the pension failure, instead holding the hospital corporation and certain officers and board members accountable.
In addition to Scharfenberger, the jury found two deceased employees of the diocese liable, according to The Evangelist: Former Albany Bishop Howard Hubbard (1938–2023), who led the diocese from 1977 to 2014, was found 20% liable; and Father David LeFort, a former vicar general of the diocese who died in August 2023, was found 5% liable.
Also found liable were St. Clare’s Corporation (20%), St. Clare’s president Joseph Pofit (25%), and former St. Clare’s president Robert Perry (20%), according to The Evangelist.
The judgments stem from a pension plan that operated for about 60 years.
In 1959, the hospital began offering employees a defined-benefit plan that provided a lifetime monthly pension after retirement.
Church plan exempt from ERISA
Like most plans operated by Catholic institutions, the pension plan had a religious exemption from the federal Employee Retirement Income Security Act of 1974 (known as ERISA), which sets minimum funding requirements for most nonreligious pension plans and also enables the federal government to step in and make payments to retirees of failed plans, using a fund financed by covered pension plans.
When the hospital closed in 2008, the officers of St. Clare’s “determined that the corporation would continue to exist for purposes of administering the pension plan,” according to a complaint filed in state court in Schenectady County by the New York attorney general’s office in May 2022.
“They also chose to continue treating the pension plan as a ‘Church plan’ — which it could do only if the corporation’s former employees and pensioners were designated as employees of the Church. This was all in order to avoid the contribution and insurance requirements of ERISA, and the duties imposed by ERISA upon corporation directors and trustees as fiduciaries,” the complaint states.
The bishop of Albany was automatically a member of the hospital’s board and served as its honorary chairman, and had authority to appoint most of the directors on the board, according to the state attorney general’s complaint.
The attorney general’s office alleged that St. Clare’s Corporation failed to make contributions to the pension fund “for all but three years from 2001 to 2019” and concealed from retirees “the insolvency of the pension plan.”
In 2018, the St. Clare’s board terminated the pension plan effective Feb. 1, 2019, because of an approximately $50 million shortfall. More than 1,100 employees lost retirement benefits, including about 650 who lost all pension payments and about 450 who received a lump-sum payment “equal to 70% of the value of their vested pension,” the complaint states. The retired employees include “nurses, lab technicians, social workers, EMTs, orderlies, housekeepers, and other essential workers” who worked at the hospital “between 10 and 50 years,” the complaint states.
Testimony and reaction
On Dec. 9 during the civil trial, Scharfenberger testified that during his tenure no boards he sat on ever discussed the hospital’s pension plan, according to The Times-Union of Albany.
In a written statement issued in August, when Scharfenberger still led the Diocese of Albany, the diocese said the bishop “has actively sought ways to help the pensioners” while denying that the diocese ever “exercised any control over St. Clare’s Hospital operations or its pension.”
“He hosted a listening session with pensioners at Siena College to identify issues and consider ways to help those in need. He also reached out to the Mother Cabrini Foundation to try to secure funding for the pensioners, but that effort was unable to move forward once the pensioners filed the lawsuit,” the statement said.
“The diocese is eager to see the case move forward and promptly resolved,” the August statement continued. “Our prayers continue for all who are struggling in any way, and as we stated previously, our offer to connect those in need with services that can help, stands. No one should walk alone.”
His successor, Bishop Mark O’Connell, who was installed as bishop of Albany on Dec. 5, told reporters shortly before the verdict was announced last week: “I care deeply about their hurt [and] not having their pensions,” according to The Evangelist.
During the Dec. 12 press conference, when a reporter asked O’Connell what the diocese would do if the jury found the diocese liable for the pension fund collapse, the bishop noted that the diocese is already in the midst of a bankruptcy process.
“If we are liable, then we’ll do what we can to make amends, given that they are one creditor as a group among many people accusing the Diocese of Albany,” O’Connell said, according to WAMC Northeast Public Radio. “And that’s what bankruptcy process is. We obviously cannot pay a billion dollars. Right? So that’s what Chapter 11 is all about, to figure out what’s fair. And since you have a bankruptcy judge and mediators, it’s not up to us.”
Later that day, the jury found the diocese not liable in the pension fund collapse lawsuit. The diocese issued a written statement, according to The Evangelist, that said: “As grateful as we are for the jury’s informed decision, we are still very much aware of the hurt felt by the St. Clare’s pensioners who cared for the sick and the poor throughout the long history of St. Clare’s Hospital. This does not mean that we will turn our backs to the pensioners, for as Bishop O’Connell has noted, they are a part of our flock; they are still in need of healing.”
That same day, lead plaintiff Mary Hartshorne, who worked in the hospital’s radiology department for about 28 years, told WNYT Channel 13 in Albany that she and other hospital retirees were pleased with the jury’s verdict but did not feel they would be made whole.
“We’ve been playing this game for seven and a half years, and I think my question I ask everybody is: How do you get that back? You don’t,” she said.
This story was first published by the National Catholic Register, CNA’s sister news partner, and has been adapted by CNA.
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![FOCUS expands reach into parishes, hoping to revitalize local Church #Catholic
Left to right: Curtis Martin, founder of FOCUS, and his son, Brock Martin, vice president of parish outreach at FOCUS, sit down for an interview with CNA on Dec. 10, 2025. | Credit: Francesca Fenton/EWTN News
Jan 3, 2026 / 08:00 am (CNA).
For nearly 30 years, FOCUS has been known for its missionary work on college campuses. Earlier this year, the ministry began to expand its reach with a new branch — FOCUS Parish.FOCUS Parish brings FOCUS missionaries into Catholic parishes to help revitalize the parish itself and the parishioners, and to form missionary disciples — laypeople who effectively spread the Gospel message in the local community and diocese.Founder of FOCUS Curtis Martin and his son, Brock Martin, vice president of parish outreach at FOCUS, both agree that FOCUS Parish is a response to the need of sending missionaries to “where the people are.”“If we’re trying to bring the Gospel to every man, woman, and child on the face of the earth, the vast majority of people don’t currently live on U.S. college campuses,” Brock told CNA in an interview. “The Catholic Church has amazingly already done this work — every inch of the globe is already mapped out into a parish structure. So, FOCUS’ move into parishes is really a response to the fact that we want to take this mission seriously. We need to send missionaries to where the people are.”Curtis added: “Everybody lives in a parish, as Brock said, and evangelization takes root when there’s real transformation. It’s going to take place in families and in parishes. That’s where Catholics live. And so we want to be with them to share the Gospel of Jesus Christ with them in the midst, as Brock said, in the midst of friendship.”Parishes who take part in FOCUS’ new ministry will receive two full-time missionaries who become part of the parish’s leadership team, help advise and lead parish ministries, and work to create small communities where the Gospel message is shared and spread to all parishioners.“These missionaries are imbedding into the parish culture,” Brock said.FOCUS Parish is currently in 25 parishes and plans to expand to an additional 25 parishes in 2026.When speaking to the fact that FOCUS Parish has become the fastest-growing part of the apostolate, Brock credited the current “landscape of the parish in the United States.”“Right now there’s about 16,000 parishes [in the U.S.],” Brock said. “I think the number of parishes who are waking up, the number of pastors who recognize that business as usual is not working, we have to, with new ardor and new methodologies, try to figure out how to live the new evangelization. I just think there’s a unique moment where as pastors and finance councils become aware of the opportunity, we’re seeing more and more people start to raise their hand at a faster rate.”Curtis highlighted the retention rate of FOCUS Parish missionaries leading to the success of the ministry.“We’re seeing greater longevity with our missionaries because they’re not walking with 18- to 22-year-olds, they’re walking with people who are of their same age, maybe older, maybe younger,” he explained. “The retention rate for FOCUS missionaries in Parish last year was 100%. Nobody left. By way of comparison, probably 25% of the missionaries left on campus; that’s part of our cycle. And so to be able to recognize, we can grow because of the longevity.”With the growth to 25 more parishes in the new year, FOCUS is looking to hire an additional 50 to 55 missionaries — considering both moving campus missionaries to parishes and hiring individuals who have never been FOCUS missionaries.As for his hopes for the future, Brock said: “My deepest hope in FOCUS Parish is that this would be a simple and repeatable gift that we can offer to the Church.”Curtis said: “My hope for FOCUS in the parish is actually hope. I think a lot of leaders in the Church are good people but they’re discouraged and they’re kind of managing a slow decline. And that’s not the way Christianity works. Christianity has grown in every generation since the time of Christ. We’re living in a very abnormal time, at least in the West. It’s shrinking. That’s not the way it should be.”He added: “There’s a resurgence of faith — articles are being written about this all over the world — FOCUS is just participating in a little way. Millions of people awakening to Christ. We need to welcome them and to be able to recognize the Church ought to be growing. This can work. And when you have hope you start to make decisions based upon that and all of a sudden you see the Church should be a place of growth.”](https://unitedyam.com/wp-content/uploads/2026/01/focus-expands-reach-into-parishes-hoping-to-revitalize-local-church-catholic-left-to-right-curtis-martin-founder-of-focus-and-his-son-brock-martin-vice-president-of-parish-outreach-at-focus.png)
![Food assistance, housing top Catholic Charities’ policy wish list in 2026 #Catholic
Credit: Jonathan Weiss/Shutterstock
Jan 2, 2026 / 07:00 am (CNA).
Many people who receive assistance through anti-poverty programs faced disruptions in 2025, and Catholic Charities’ wish list for 2026 includes government support for food assistance and housing.The largest disruption came in October when food stamps received through the Supplemental Nutrition Assistance Program (SNAP) were delayed amid the government shutdown. Funding for rental and heating assistance were also disrupted.Confusion about how to implement a memo in January from the Office of Management and Budget calling for a grant freeze also caused delays in funding related to health care, housing affordability, and food assistance.Luz Tavarez, vice president of government relations at Catholic Charities USA, said “people get nervous and scared” amid disruptions.Many Catholic Charities affiliates saw an influx in clients, especially during the shutdown, but Tavarez said there are “very poor people who rely on SNAP subsidies for their meals” and who “can’t get to a Catholic Charities [affiliate] or other food pantry for assistance” when it happens.Long-term eligibility and funding changes to SNAP were also approved in the tax overhaul signed into law in July. Previous rules only included a work requirement up to age 54, but the law extended those requirements up to age 64. It added stricter and more frequent checks for verifying the work requirements.It also shifted some funding responsibilities away from the federal government and to the states.Tavarez expressed concern about some of the SNAP changes as well, saying the government should end “burdensome requirements for individuals and states.”Under the new law, there are stricter rules for verifying a person’s immigration status for benefits. It also limited which noncitizens could receive SNAP benefits, which excluded some refugees and people granted asylum. Tavarez expressed concern about such SNAP changes, encouraging the government to permit “humanitarian-based noncitizens” to receive those benefits.Overall the 2025 tax law gave the biggest boost to the richest families while poorer families might get a little less help than before, according to the Congressional Budget Office.The bill added a work requirement for Medicaid recipients, and this will not take effect until 2027. Under the previous law, there was no work requirement for this benefit. It also shifts some Medicaid funding requirements onto the states.Tavarez said Catholic Charities has “concerns with how [work requirements are] implemented” moving forward but does not oppose the idea outright: “There’s dignity in work so the Church isn’t necessarily opposed to people working as long as there’s some opportunities for people to do other things and other issues are taken into consideration.”She also expressed concerns about funding shifts: “We know that not every state views things like SNAP and Medicaid as a good thing. We don’t know how states are going to balance their budget and prioritize these programs.”2026 wish listLooking forward to 2026, Tavarez said Catholic Charities hopes the government will restore full funding to the Temporary Emergency Food Assistance Program for food banks and bulk food distribution programs and ensure that funding is protected for school meals and the Special Supplemental Nutrition Program for Women, Infants, and Children.The Department of Housing and Urban Development (HUD) made policy changes in November that would focus its homelessness funding on “transitional” housing instead of “permanent” housing. This move is facing legal challenges.President Donald Trump’s administration initially sought to cut federal housing assistance and shift much of those costs to states, but this was ultimately not included in the final version of the 2025 tax law.In December, Trump promised an “aggressive” housing reform plan that focuses on reducing costs. At this time, the specifics of that proposal have not been announced. The increased cost to buy a new home has outpaced the growth in wages for decades.Tavarez said Catholic Charities is focused on housing affordability in 2026 and that the solution must be multifaceted. This includes “building and developing affordable housing,” “a tax credit for developers,” “more affordable housing units,” and subsidies and Section 8 vouchers for low-income Americans, she said.“We recognize that there’s a real crisis — I think everybody does in a bipartisan way — but there needs to be a real bipartisan approach and it’s going to require money,” Tavarez said.Tax credits and economic trendsSome changes to the tax code included in the 2025 tax law are geared toward helping low-income Americans.Specifically, the law reduced taxes taken from tips and overtime work. It also increased the child tax credit from $2,000 to $2,200 and tied the credit to inflation, meaning that it will increase each year based on the rate of inflation.Tavarez characterized the changes to the child tax credit as a “win” and hopes it can be expanded further.The economy has been a mixed bag, with November unemployment numbers showing a 4.6% rate. In November of last year, it was slightly lower at 4.2%.Inflation has gone down a little, with the annual rate being around 2.7%. In 2024, it was around 2.9%. The average wage for workers also outpaced inflation, with hourly wages increasing by 3.5%, which shows a modest inflation-adjusted increase of 0.8%.](https://unitedyam.com/wp-content/uploads/2026/01/food-assistance-housing-top-catholic-charities-policy-wish-list-in-2026-catholic-credit-jonathan-weiss-shutterstockjan-2-2026-0700-am-cna-many-people-who-receive-assistance-th.jpg)
![Religious sisters offer abortion clinic workers Christmas cards with resources and prayers #Catholic
null / Credit: Rawpixel.com/Shutterstock
Washington, D.C. Newsroom, Dec 24, 2025 / 08:00 am (CNA).
Abortion clinic workers across the country are once again receiving Christmas cards from religious sisters offering prayers, compassion, and an invitation to seek a career outside the abortion industry.And Then There Were None (ATTWN), a pro-life organization dedicated to assisting abortion clinic workers leave their jobs and find life-affirming careers, carries out this ministry each Christmas season with help from convents around the country. The Christmas card project is a part of a larger mission of handwritten cards sent throughout the year.This year, Dominican, Maronite, Benedictine, Carmelite, Capuchin, and Franciscan sisters, as well as Apostolic Sisters of St. John and Trinitarians of Mary, sent at least 1,030 handwritten Christmas cards to abortion clinic workers with loving messages and an image of the Holy Family. Reaching ‘quitters’ATTWN has sent nearly 23,000 handwritten cards to abortion facilities in the last decade, encouraging workers to leave their jobs with ATTWN’s support.“The clinics are hearing from us about once every four to five business days in some way, whether it’s through some gift, a little trinket, a handwritten card, a postcard, or something we send in,” Abby Johnson, ATTWN CEO and founder, told CNA.Johnson herself once worked in the industry, serving as a clinic director of an abortion facility in Bryan, Texas, for eight years before leaving and starting ATTWN to help other “quitters” leave, find new employment, and heal from their experiences.“Our handwritten card ministry is one of the most effective ministries we have in reaching abortion clinic workers and having them leave,” she said. “There’s just something very personal about a handwritten note. Somebody took the time to sit down and write to you.” ATTWN has “dozens and dozens” of volunteers who send the messages regularly, Johnson said. “We have a really accurate database of abortion clinics and abortion referral facilities. I think there’s about 850 facilities on there, and this group of women are constantly writing notes.” When workers receive the notes, “they leave,” Johnson said. “Workers will say, ‘I got this letter. I folded it up, I kept it in my purse, I put it in my scrub pocket, and I went home and I called you guys.’ So it is very powerful. We see that it does truly make a difference.”“I received a handwritten note from one of my sidewalk counselors when I worked at the clinic, and I still have it in my wallet,” Johnson said. “It’s just a Bible verse on it, but it says, ‘The Lord has done great things for us, and we are filled with joy.’ And I still have that little card in my wallet from 18 years ago.”The note “meant enough at that time to keep it,” Johnson said. “I pull it out and remind myself why I’m doing [pro-life work] and how God has blessed me so much. It’s just a powerful reminder that someone out there took the time to think about you, specifically.”Christmas card ministry The letters create “by far the most overwhelming response … and we have the highest response from them at Christmastime, which is when they are receiving the notes from the sisters,” Johnson said. Five years ago, Johnson decided to incorporate the Christmas season into the ministry, specifically with the help of religious sisters. “The idea came to me because I was very moved by a Franciscan sister who used to pray in front of the facility where I used to work in Bryan, Texas. It was the first time that I had ever seen a nun in public in my life.”“I was so struck by her being out there and her presence,” she said. “It was so hot outside, and she was in her full habit, and her little face was so red. It was over 100 degrees. I remember I just watched her all day outside my window.”“I remember the first patient that left that day after having an abortion, she fell to her knees and was just weeping. I thought: ‘Wow, this has really impacted her in a way that I just can’t understand. She has a sorrow that I just don’t understand.’”“That’s always stayed with me ever since I was working there … So when we started the ministry, we started thinking: ‘How could we incorporate nuns in some way?’” If workers started speaking with religious sisters, it could “make an impact on their heart,” Johnson thought. “We started reaching out to convents across the country, asking them if they would partner with us.”Several reached back out to ATTWN and eagerly wanted to be a part of the project.A ‘perfect partnership’ATTWN shares its database of clinics with the sisters, “then they just start writing,” Johnson said. “It’s just been really beautiful to see the fruit of that.”Some of the participating sisters live in cloistered convents. “They don’t go out. They spend their lives in contemplative prayer,” Johnson said. “So their only real correspondence is through mail, through writing. So it’s beautiful work for them.”“This is what they do. They write notes, they send letters, they pray. That’s what they do all day long. So it’s a perfect ministry for them. It’s a perfect partnership.”ATTWN will send the sister some ideas of what they can write so they know the proper resources to share with the workers, but then they can add any additional messages.“They fill in other things that they would like to say, different spiritual things that they feel led to say,” Johnson said. Their messages are “from their hearts and are just so prayerful and beautiful.”After the sisters write the Christmas cards, they are “put on the altar, they’re blessed, they’re prayed over, and they’re sent in.”“We always make sure that we send them a card that has the image of the Holy Family on it. We just want to remind them that that’s what God wants for them, and this is what Christmas is about — it’s about the Lord.”The image is a reminder that “this is what we’re designed for,” Johnson said. “We’re designed for families, and God wants families for them as well. He wants families for the women who are walking into those clinics.” “He created us for good, for family, for love, and for creation, not for destruction. We make sure that the cards that we send in have an image that really defines that.”Johnson plans for ATTWN to continue to send the annual cards from the sisters. “For so many of these convents, being pro-life is a part of who they are. It’s part of their charism,” she said. “So we would love to have as many as we can participate.](https://unitedyam.com/wp-content/uploads/2025/12/religious-sisters-offer-abortion-clinic-workers-christmas-cards-with-resources-and-prayers-catholic-null-credit-rawpixel-com-shutterstockwashington-d-c-newsroom-dec-24-2025-0800-am-c.webp){kind=tracking}
![Albany’s retired bishop files for personal bankruptcy #Catholic
Bishop Edward Scarfenberger. / Credit: Photo courtesy of the Diocese of Albany
National Catholic Register, Dec 19, 2025 / 12:24 pm (CNA).
A retired New York bishop has filed for personal bankruptcy protection in federal court after a state jury verdict found him, along with other officials, personally liable for the collapse of a Catholic hospital pension fund that left about 1,100 retirees without the lifetime monthly payments they were expecting.It’s not clear whether a Catholic bishop in the United States has ever previously filed for personal bankruptcy protection.Bishop Edward Scharfenberger, 77, who served as bishop of Albany from April 2014 until his retirement in October, is seeking protection from creditors for his assets valued at between $100,001 and $500,000, according to a filing Tuesday in the U.S. Bankruptcy Court for the Northern District of New York.The seven-page filing does not list the bishop’s assets but states that he has between 100 and 199 creditors and debts totaling between $1,000,001 and $10 million.Last week, a jury found Scharfenberger 10% liable in a $54.2 million judgment in a civil lawsuit over the failed pension plan once provided by St. Clare’s Hospital in Schenectady, a Catholic hospital that operated from 1949 until 2008, according to The Evangelist, the diocese’s newspaper.The verdict and judgment, issued Dec. 12, cover compensatory damages — the amount a court finds is owed to plaintiffs for harm they have suffered — but not punitive damages, which may be added in cases of recklessness, malice, or fraud. The bankruptcy filings by the bishop and another defendant in the state lawsuit over the pension plan failure forced a pause in a punitive damages hearing earlier this week, according to WNYT Channel 13 in Albany.The National Catholic Register, CNA’s sister news partner, was unable to reach Scharfenberger before the publication of this story. A lawyer representing the bishop acknowledged a request for comment Dec. 17 but did not immediately provide one.A rare personal bankruptcyIn recent decades, bankruptcies have occurred regularly in the Catholic Church in the United States. Between 2004 and November 2025, 39 of the country’s dioceses have filed for bankruptcy, almost all to protect assets from clergy sex-abuse lawsuits, as the Register reported last month. One of those is the Diocese of Albany, which filed for bankruptcy in March 2023. But those diocesan cases were filed under Chapter 11 of the U.S. Bankruptcy Code, which allows a corporation, partnership, or sole proprietorship to reorganize and continue operating while developing a court-approved plan to repay creditors.Scharfenberger filed under Chapter 13, which allows an individual with regular income who cannot pay debts to keep certain assets while working out a repayment plan. “The rules in Chapter 13 permit a debtor to keep property and confirm a plan with payments to creditors based on the debtor’s ‘disposable income,’” said Marie Reilly, a bankruptcy expert and law professor at Penn State Dickinson Law, in an email. “If the debtor commits his disposable income to paying creditors for the term of a three- to five-year plan, he gets a discharge (forgiveness) of the unpaid balance.”Reilly, who has researched several dozen diocesan bankruptcies for The Catholic Project, a lay initiative of The Catholic University of America in Washington, D.C., told the Register that the bankruptcy filing does not necessarily solve all of the bishop’s money problems.“There are exceptions — some debts don’t get discharged. Creditors can object to the plan if it does not meet the statutory requirements,” Reilly said. “And, it is possible that the pension fund creditor may move to dismiss the bishop’s Chapter 13 case as having been filed ‘in bad faith.’”$50 million shortfall St. Clare’s Hospital was originally run by the Franciscan Sisters of the Poor. The Diocese of Albany maintains that it never owned the hospital and that the bishop of Albany merely provided “canonical oversight” to make sure the hospital met “its mission to serve all in accord with Catholic moral standards,” according to an August 2025 statement from the diocese.Last week, the jury found that the Diocese of Albany has no liability for the pension failure, instead holding the hospital corporation and certain officers and board members accountable. In addition to Scharfenberger, the jury found two deceased employees of the diocese liable, according to The Evangelist: Former Albany Bishop Howard Hubbard (1938–2023), who led the diocese from 1977 to 2014, was found 20% liable; and Father David LeFort, a former vicar general of the diocese who died in August 2023, was found 5% liable. Also found liable were St. Clare’s Corporation (20%), St. Clare’s president Joseph Pofit (25%), and former St. Clare’s president Robert Perry (20%), according to The Evangelist.The judgments stem from a pension plan that operated for about 60 years. In 1959, the hospital began offering employees a defined-benefit plan that provided a lifetime monthly pension after retirement.Church plan exempt from ERISALike most plans operated by Catholic institutions, the pension plan had a religious exemption from the federal Employee Retirement Income Security Act of 1974 (known as ERISA), which sets minimum funding requirements for most nonreligious pension plans and also enables the federal government to step in and make payments to retirees of failed plans, using a fund financed by covered pension plans.When the hospital closed in 2008, the officers of St. Clare’s “determined that the corporation would continue to exist for purposes of administering the pension plan,” according to a complaint filed in state court in Schenectady County by the New York attorney general’s office in May 2022. “They also chose to continue treating the pension plan as a ‘Church plan’ — which it could do only if the corporation’s former employees and pensioners were designated as employees of the Church. This was all in order to avoid the contribution and insurance requirements of ERISA, and the duties imposed by ERISA upon corporation directors and trustees as fiduciaries,” the complaint states.The bishop of Albany was automatically a member of the hospital’s board and served as its honorary chairman, and had authority to appoint most of the directors on the board, according to the state attorney general’s complaint.The attorney general’s office alleged that St. Clare’s Corporation failed to make contributions to the pension fund “for all but three years from 2001 to 2019” and concealed from retirees “the insolvency of the pension plan.”In 2018, the St. Clare’s board terminated the pension plan effective Feb. 1, 2019, because of an approximately $50 million shortfall. More than 1,100 employees lost retirement benefits, including about 650 who lost all pension payments and about 450 who received a lump-sum payment “equal to 70% of the value of their vested pension,” the complaint states. The retired employees include “nurses, lab technicians, social workers, EMTs, orderlies, housekeepers, and other essential workers” who worked at the hospital “between 10 and 50 years,” the complaint states.Testimony and reactionOn Dec. 9 during the civil trial, Scharfenberger testified that during his tenure no boards he sat on ever discussed the hospital’s pension plan, according to The Times-Union of Albany. In a written statement issued in August, when Scharfenberger still led the Diocese of Albany, the diocese said the bishop “has actively sought ways to help the pensioners” while denying that the diocese ever “exercised any control over St. Clare’s Hospital operations or its pension.” “He hosted a listening session with pensioners at Siena College to identify issues and consider ways to help those in need. He also reached out to the Mother Cabrini Foundation to try to secure funding for the pensioners, but that effort was unable to move forward once the pensioners filed the lawsuit,” the statement said. “The diocese is eager to see the case move forward and promptly resolved,” the August statement continued. “Our prayers continue for all who are struggling in any way, and as we stated previously, our offer to connect those in need with services that can help, stands. No one should walk alone.”His successor, Bishop Mark O’Connell, who was installed as bishop of Albany on Dec. 5, told reporters shortly before the verdict was announced last week: “I care deeply about their hurt [and] not having their pensions,” according to The Evangelist.During the Dec. 12 press conference, when a reporter asked O’Connell what the diocese would do if the jury found the diocese liable for the pension fund collapse, the bishop noted that the diocese is already in the midst of a bankruptcy process.“If we are liable, then we’ll do what we can to make amends, given that they are one creditor as a group among many people accusing the Diocese of Albany,” O’Connell said, according to WAMC Northeast Public Radio. “And that’s what bankruptcy process is. We obviously cannot pay a billion dollars. Right? So that’s what Chapter 11 is all about, to figure out what’s fair. And since you have a bankruptcy judge and mediators, it’s not up to us.”Later that day, the jury found the diocese not liable in the pension fund collapse lawsuit. The diocese issued a written statement, according to The Evangelist, that said: “As grateful as we are for the jury’s informed decision, we are still very much aware of the hurt felt by the St. Clare’s pensioners who cared for the sick and the poor throughout the long history of St. Clare’s Hospital. This does not mean that we will turn our backs to the pensioners, for as Bishop O’Connell has noted, they are a part of our flock; they are still in need of healing.”That same day, lead plaintiff Mary Hartshorne, who worked in the hospital’s radiology department for about 28 years, told WNYT Channel 13 in Albany that she and other hospital retirees were pleased with the jury’s verdict but did not feel they would be made whole.“We’ve been playing this game for seven and a half years, and I think my question I ask everybody is: How do you get that back? You don’t,” she said.This story was first published by the National Catholic Register, CNA’s sister news partner, and has been adapted by CNA.](https://unitedyam.com/wp-content/uploads/2025/12/albanys-retired-bishop-files-for-personal-bankruptcy-catholic-bishop-edward-scarfenberger-credit-photo-courtesy-of-the-diocese-of-albanynational-catholic-register-dec-19-2025-1.webp)
![Top 2025 religious freedom developments included mix of persecution, protection #Catholic
null / Credit: Joe Belanger/Shutterstock
Washington, D.C. Newsroom, Dec 19, 2025 / 06:00 am (CNA).
Here is an overview of some of the religious freedom developments and news in the United States and abroad in 2025:White House started the Religious Liberty CommissionPresident Donald Trump established the White House Religious Liberty Commission in May to report on threats to religious freedom in the U.S. and seek to advance legal protections. The commission and advisory boards include members of various religions. Catholic members on the commission include Cardinal Timothy Dolan and Bishop Robert Barron. Catholic advisory board members include Archbishop Salvatore J. Cordileone, Bishop Thomas Paprocki, Bishop Kevin Rhoades, and Father Thomas Ferguson.Lawmakers condemned persecution of Christians Rep. Riley Moore, R-West Virginia, and Sen. Josh Hawley, R-Missouri, introduced a joint resolution condemning the persecution of Christians in Muslim-majority countries across the world.The measure called on the Trump administration to leverage trade, security negotiations, and other diplomatic tools to advocate for religious freedom. Court blocked law that would require priests to violate the seal of confessionWashington Gov. Bob Ferguson signed a state law in May that would require priests to report child abuse to authorities even if they hear about it during the sacrament of confession. Catholic bishops brought a lawsuit against the measure. A federal judge blocked the controversial law.Trump announced federal guidelines to protect prayer at public schoolsPresident Donald Trump announced the U.S. Department of Education will issue federal guidelines to protect prayer at public schools during a Sept. 8 Religious Liberty Commission hearing. He said the guidelines will “protect the right to prayer in our public schools and [provide for] its total protection.”The president said he sought the guidelines after hearing about instances of public school students and staff being censored and facing disciplinary action for engaging in prayer, reading the Bible, and publicly expressing their faith.Report found most states fail to safeguard religious liberty About three-fourths of states scored less than 50% on Napa Legal Institute’s religious freedom index, which measures how well states safeguard religious liberty for faith-based organizations. The October report was part of Napa’s Faith & Freedom Index that showed Alabama scored the highest and Michigan scored the lowest.Lawmakers urged federal court to allow Ten Commandments displayFirst Liberty Institute and Heather Gebelin Hacker of Hacker Stephens LLP filed an amicus brief in December on behalf of 46 United States lawmakers urging the federal court to allow the Ten Commandments to be displayed in public schools.Speaker of the U.S. House of Representatives Mike Johnson, R-Louisiana; Rep. Chip Roy, R-Texas; and Sens. Ted Cruz and John Cornyn, R-Texas, were among the lawmakers who supported the cause after federal judges blocked Texas and Louisiana laws requiring the display of the commandments.Supreme Court ruled on religious freedom cases The U.S. Supreme Court ruled in favor of a group of Maryland parents who sued a school district over its refusal to allow families to opt their children out of reading LGBT-themed books. In a 6-3 decision on July 27 in Mahmoud v. Taylor, the court ruled the Catholic, Orthodox, and Muslim parents “are likely to succeed on their claim that the board’s policies unconstitutionally burden their religious exercise.” In July, the Supreme Court ordered the New York Court of Appeals to revisit Diocese of Albany v. Harris, which challenged a 2017 New York state mandate requiring employers to cover abortions in health insurance plans.In October, a Native American group working to stop the destruction of a centuries-old religious ritual site in Arizona lost its appeal to the Supreme Court.Religious liberty abroad: Religious freedom diminished in AfghanistanThe U.S. Commission on International Religious Freedom (USCIRF) said in a report that “religious freedom conditions in Afghanistan continue to decline dramatically under Taliban rule.”The USCIRF wrote in an Aug. 15 report examining the Taliban’s Law on the Propagation of Virtue and Prevention of Vice one year after its enactment: The morality law “impacts all Afghans” but “disproportionately affects religious minorities and women, eradicating their participation in public life and systematically eliminating their right to [freedom of religious belief].”Chinese government banned Catholic priests from evangelizing onlineIn September, the State Administration for Religious Affairs in China banned several forms of online evangelization for religious clergy of all religions, including Catholic priests.The Code of Conduct for Religious Clergy was made up of 18 articles including one that said faith leaders are banned from performing religious rituals through live broadcasts, short videos, or online meetings. U.S. commission said China should be designated as a country of particular concernThe USCIRF reported China tries to exert total control over religion and said the U.S. Department of State should redesignate China as a “country of particular concern” (CPC) regarding religious freedom.USCIRF said in September that China uses surveillance, fines, retribution against family members, imprisonment, enforced disappearance, torture, and other forms of abuse to control the Catholic Church and other religious communities in the nation.In its annual report, USCIRF also recommended Afghanistan, Burma, Cuba, Eritrea, India, Iran, Nicaragua, Nigeria, North Korea, Pakistan, Russia, Saudi Arabia, Tajikistan, Turkmenistan, and Vietnam be designated as CPCs.](https://unitedyam.com/wp-content/uploads/2025/12/top-2025-religious-freedom-developments-included-mix-of-persecution-protection-catholic-null-credit-joe-belanger-shutterstockwashington-d-c-newsroom-dec-19-2025-0600-am-cna-h.webp)
![HHS announces actions to restrict ‘sex-rejecting procedures’ on minors #Catholic
President Donald J. Trump watches as Robert F. Kennedy Jr., Health and Human Services Secretary, speaks after being sworn in on Thursday, Feb. 13, 2025, in Washington, D.C. / Credit: Jabin Botsford/The Washington Post via Getty Images
Washington, D.C. Newsroom, Dec 18, 2025 / 13:31 pm (CNA).
The Department of Health and Human Services (HHS) proposed regulations today that would seek to end “sex-rejecting procedures” on anyone younger than 18 years old, which includes restrictions on hospitals and retailers.Under one proposal, the Centers for Medicare & Medicaid Services (CMS) would withhold all funding through Medicare and Medicaid to any hospital that offers surgeries or drugs to minors as a means to make them resemble the opposite sex. The proposed rules would prohibit federal Medicaid funding for “sex-rejecting procedures” on anyone under 18 and prohibit federal Children’s Health Insurance program (CHIP) funding for the procedures on anyone under 19.This includes surgical operations, such as the removal of healthy genitals to replace them with artificial genitals that resemble the opposite sex and chest procedures that remove the healthy breasts on girls or implant prosthetic breasts on boys.It also includes hormone treatments that attempt to masculinize girls with testosterone and feminize boys with estrogen and puberty blockers, which delay a child’s natural developments during puberty.HHS also announced that the Food and Drug Administration (FDA) is issuing warning letters to 12 manufacturers and retailers that they accuse of illegally marketing “breast binders” to girls under the age of 18 as a treatment for gender dysphoria. Breast binders compress breasts as a means to flatten them under their clothing.The news release said breast binders are Class 1 medical devices meant to help recover from cancer-related mastectomies, and the warning letters will “formally notify the companies of their significant regulatory violations and how they should take prompt corrective action.”Additionally, HHS is working to clarify the definition of a “disability” in civil rights regulations to exclude “gender dysphoria” that does not result from physical impairments. This ensures that discrimination laws are not interpreted in a way that would require “sex-rejecting procedures,” the statement said.HHS Secretary Robert F. Kennedy Jr. said in a news conference that “sex-rejecting procedures” on minors are “endangering the very lives that [doctors] are sworn to safeguard.”“So-called gender-affirming care has inflicted lasting physical and psychological damage on vulnerable young people,” he said. “This is not medicine — it is malpractice.” The proposals would conform HHS regulations to President Donald Trump’s Jan. 28 executive order to prohibit the “chemical and surgical mutilation” of children. The order instructed HHS to propose regulations to prevent these procedures on minors.In a news release, HHS repeatedly referred to the medical interventions as “sex-rejecting procedures” and warned they “cause irreversible damage, including infertility, impaired sexual function, diminished bone density, altered brain development, and other irreversible physiological effects.”HHS cited its own report from May, which found “deep uncertainty about the purported benefits of these interventions” for treating a minor with gender dysphoria. The report found that “these interventions carry risk of significant harms,” which can include infertility, sexual dysfunction, underdeveloped bone mass, cardiovascular disease, metabolic disorders, psychiatric disorders, and adverse cognitive impacts, among other complications.Stanley Goldfarb, chairman of Do No Harm, a medical advocacy group, said in a statement that the proposed regulation on hospitals is “another critical step to protect children from harmful gender ideology” and said he supports rules that ensure “American taxpayer dollars do not fund sex-change operations on minors.”“Many so-called gender clinics have already begun to close as the truth about the risks and long-term harms about these drugs and surgeries on minors have been exposed,” he said. “Now, hospitals that receive taxpayer funds from these federal programs must follow suit.”Mary Rice Hasson, director of the Person and Identity Project at the Ethics and Public Policy Center (EPPC), said she sees the proposed restriction on hospitals as “excellent.”“This proposed rule sends a powerful message to states and health care providers: It’s time to stop these unethical and dangerous procedures,” Hasson said. “Puberty is not a disease to be medicated away. All children have the right to grow and develop normally.”“Sex-rejecting procedures promise the impossible: that a child can escape the reality of being male or female,” she added. “In reality, these sex-rejecting procedures provide only the illusion of ‘changing sex’ by disabling healthy functions and altering the child’s healthy body through drugs and surgery that will cause lifelong harm.”In January, Bishop Robert Barron, chair of the United States Conference of Catholic Bishops’ (USCCB) Committee on Laity, Marriage, Family Life, and Youth, welcomed Trump’s executive action on these procedures, warning that they are “based on a false understanding of human nature, attempt to change a child’s sex.”“So many young people who have been victims of this ideological crusade have profound regrets over its life-altering consequences, such as infertility and lifelong dependence on costly hormone therapies that have significant side effects,” Barron said. “It is unacceptable that our children are encouraged to undergo destructive medical interventions instead of receiving access to authentic and bodily-unitive care.”](https://unitedyam.com/wp-content/uploads/2025/12/hhs-announces-actions-to-restrict-sex-rejecting-procedures-on-minors-catholic-president-donald-j-trump-watches-as-robert-f-kennedy-jr-health-and-human-services-secretary-sp.webp)
![Filipino archbishop asks Catholics to attend protests against government corruption #Catholic
Members of Iglesia ni Cristo take part in a protest against corruption on Nov. 16, 2025 in Manila, Philippines. A powerful Philippine megachurch, Iglesia ni Cristo, mobilized over half a million members to join growing protests over alleged corruption in multibillion-peso flood control projects. Catholic leaders in the Philippines have also mobilized Catholics to participate in similar marches. / Credit: Ezra Acayan/Getty Images
CNA Staff, Nov 28, 2025 / 05:53 am (CNA).
Here is a roundup of Catholic world news from the past week that you might have missed. Filipino archbishop asks Catholics to attend protests against government corruptionCardinal Pablo Virgilio David, the outgoing president of the Catholic Bishops’ Conference of the Philippines, has invited Filipinos across the country to attend rallies this weekend in Manila to protest government corruption. The protest comes on the heels of the Trillion Peso March held on Sept. 21, which drew hundreds of thousands.Thousands of Filipinos are expected to participate in the march Sunday, according to Herald Malaysia Online. The protests come amid a growing political crisis and rising public anger over scandals and abuses of government funds.Priest and security guard attacked in Trinidad A priest and a security guard at St. Benedict’s Roman Catholic Church in La Romaine, Trinidad, were the victims of an attack and robbery on Monday, Trinidad Express reported. Five attackers cut the electricity, bound the security guard, entered the rectory, woke and tied up the priest Father Derek Anton, and stole various electronics and cash. The crime is being investigated and the Archdiocese of Port of Spain has confirmed it. “At this time we ask you all for your prayers [for the victims] and for all victims of crime,” the archdiocese said in its statement.Mozambique archbishop pleads for humanitarian support to aid displaced peopleArchbishop Inacio Saure of Namula, Mozambique, has issued an urgent plea for humanitarian aid for more than 30,000 people who have been displaced in the Alua district of Memba. Saure, who is also president of the Episcopal Conference of Mozambique told Vatican News that the people have fled their homes “are currently sheltering in the administrative post of Alua” due to recent terrorist incursions in Nampula province. The archbishop said he has instructed Caritas in Nampula to respond to the crisis. Catholic Church rallies in Thailand to assist victims of historic flooding Historic flooding in southern Thailand has impacted over two million people, causing death and destruction and stranding many tourists. According to Vatican News, in response to the disaster Bishop Paul Trairong Multree of the Diocese of Surat Thani called a meeting Tuesday of Church-led relief groups. “Our relief team will get working tomorrow morning immediately with [the Catholic Office for Emergency Relief and Refugees], bringing drinking water and essentials to the people affected,” Trairong reportedly told LiCAS News, adding that supplies are expected to arrive from Bangkok and other dioceses. Tensions between Pakistanis and Afghans may erupt into new war, says Karachi priestEscalating tensions between Pakistan and Afghanistan have created fear that a new war may be on the horizon, according to Father Mario Angelo Rodrigues, a priest of the Archdiocese of Karachi and rector of St. Patrick’s Catholic High School in Karachi. He told Fides that resentments and fears have built in the wake of the influx of Afghani refugees and recent terrorist attacks. “To re-establish a climate of mutual trust and embark on a path to peace, the Pakistani government should accept the situation and grant residency to Afghan refugees who are living peacefully and have no links to terrorism, in the spirit of an open and pluralistic society,” the priest said. He also noted that “the government in Kabul should cooperate in combating terrorism, our common enemy. As Pakistani Christians, we support paths of acceptance and brotherhood so that we can live in true peace within our society and with our neighbors." Nun who fights human trafficking reacts to new UN report on femicideIn the wake of a new UN report highlighting the high numbers of women killed by men and new forms of violence being caused by tech developments, Sister Abby Avelino, the international coordinator of Talitha Kum, an international group that fights human trafficking, told Vatican News that, “Digital violence is increasingly widespread, and the online world is now a major site of exploitation.” The UN report shows that more than 38% of women are estimated to have experienced online violence, while 85% have witnessed abuse directed at other women on digital platforms.](https://unitedyam.com/wp-content/uploads/2025/11/filipino-archbishop-asks-catholics-to-attend-protests-against-government-corruption-catholic-members-of-iglesia-ni-cristo-take-part-in-a-protest-against-corruption-on-nov-16-2025-in-manila-phi.webp)
