Archdiocese of NY Finalizes $800M Fund for Sex Abuse Survivors; Avoids Bankruptcy
The Archdiocese of New York has finalized an $800 million settlement to resolve more than 1,300 outstanding claims of sexual abuse by clergy filed under the state’s Child Victim’s Act (CVA) and other laws.
“As of today, November 5, 2026, we have signed that settlement agreement, making it official,” Archbishop Ronald A. Hicks stated in a letter to parishioners yesterday, after years of lawsuits and negotiations.
Hicks said the archdiocese’s goal has always been to bring a “fair and just resolution” for victim-survivors, and to “promote healing and reconciliation” among those who have been hurt. “We believe that this global settlement achieves that goal,” he added.
“This settlement represents accountability, an acknowledgment of the wrongs committed, and a meaningful step toward a measure of justice,” said Jeff Anderson , an attorney representing people who filed more than 1,000 claims.
The archdiocese and some parishes will provide a total compensation fund for victim survivors of $804.25 million. There will be two payments, with the first payment of approximately $619.25 million this year, and a second payment 15 months later.
To fund the settlement, the archdiocese has sold off assets including its former chancery in Manhattan and a ground lease under the Palace Hotel. It has moved staff into smaller office space, cut its budget by 10%, and laid off staff. While the archdiocese hoped to avoid asking parishes for contributions, the final deal will include portions of financial reserves from some parishes and the sale of unused properties.
The settlement means the archdiocese will not file for bankruptcy as it threatened to do and as the dioceses of Buffalo, Rockville Centre and others across the country have done. Since the New York archdiocese never filed bankruptcy, the settlement does not need court approval.
The Child Victims Act enacted in 2019 allowed survivors of child sexual abuse to sue their abusers and their institutions until they turn 55. Those who were 55 when the law was enacted were given until August 2021 to file lawsuits.
According to attorney Anderson, survivors may opt to receive an expedited settlement payment or proceed through an process that evaluates their individual claims. Of the 1,298 claimants, approximately one-third have elected the $250,000 quick-pay option.
In addition, according to Anderson, survivors and the Plaintiffs’ Liaison Committee that negotiated on behalf of survivors will have an interest in current litigation by the archdiocese against Chubb Insurance Group, and its affiliate Century Indemnity Co. Chubb insured the archdiocese but has not participated in the settlement. Chubb has taken the position that its policies cover accidents and do not cover the church for “knowingly allowing a pattern of abuse to persist for many years” or concealing criminal activity. The litigation is pending in the New York County Supreme Court.
Beyond monetary compensation, the deal requires the church to publish the identities of ‘credibly accused” offenders, according to Anderson.
“We continue to promise both our prayers for those who continue to suffer from the trauma they experienced and recommit ourselves to ensuring that these horrific misdeeds are never again committed in our Church,” Hicks said in his letter.
Photo: Archbishop-designate Ronald Hicks talks to reporters during a news conference at St. Patrick’s Cathedral in New York, Feb. 5, 2026. (AP Photo/Seth Wenig)