The Archdiocese of New York has announced the creation of a $300 million compensation fund for victims of sexual abuse who have filed claims against the Catholic Church, marking one of the largest such efforts in its history.
For decades, the Church has grappled with the crisis of clergy sexual abuse and accusations of systemic cover-ups, many reaching senior levels of church leadership.
In a letter to the faithful on Monday, Cardinal Timothy Dolan, Archbishop of New York, acknowledged the deep wounds caused by the scandal and the painful measures required to address them.
To raise the compensation fund, Dolan said the archdiocese was forced to make a “series of very difficult financial decisions,” including staff layoffs and a 10 percent cut to its operating budget.
He also confirmed plans to sell major real estate holdings, including the former archdiocesan headquarters on First Avenue in Manhattan, The New York Times reported.
“As we have repeatedly acknowledged, the sexual abuse of minors long ago has disgraced our Church,” Dolan wrote. “I once again ask forgiveness for the failing of those who betrayed the trust placed in them by failing to protect our young people.”
In addition to the financial package, the archdiocese has hired retired Judge Daniel Buckley to serve as a neutral mediator between church officials and survivors to help negotiate settlements.
Buckley previously oversaw similar high-profile negotiations between the Archdiocese of Los Angeles and more than 1,000 victims.
According to multiple media reports, the New York case involves approximately 1,300 individuals who say they were abused as children by priests or lay personnel.
The announcement coincided with a separate development in Louisiana, where a federal judge approved a major settlement for hundreds of abuse survivors of the New Orleans Archdiocese, underscoring a wave of accountability efforts across the American Catholic Church.