Lutheran Family Services of Nebraska, a long-standing nonprofit providing mental health and substance abuse services, has found itself at the center of controversy following unverified claims of financial misconduct. The allegations surfaced on social media when Michael Flynn, former national security adviser to President Donald Trump, suggested that federal payments to Lutheran Family Services affiliates, including $3.3 million to its Nebraska branch, constituted “money laundering.”
The claim gained momentum when it was reshared by Elon Musk, who currently leads Trump’s newly established Department of Government Efficiency. Musk further escalated the claims by stating that his team was working swiftly to “shut down these illegal payments.”
Chris Tonniges, president and CEO of Lutheran Family Services, refuted the allegations, explaining that the nonprofit receives direct federal funding strictly for behavioral health, mental health, and substance abuse services. Additionally, the organization receives indirect funding through its national parent agency for refugee resettlement and support services, as well as local and state funding for foster care and adoptions.
The social media posts led to a surge of negative calls to the nonprofit, which Tonniges described as “disheartening and disappointing.” However, he noted that many supporters also reached out, questioning whether Flynn and Musk fully understood the nonprofit’s role in serving Nebraska families. The most concerning calls, he said, came from clients who feared their critical services might be at risk, including a mother worried about her child’s therapy access. Tonniges reassured families that services would continue without disruption.
Founded 133 years ago by Lutheran pastors, Lutheran Family Services originally operated orphanages in Omaha and Fremont before expanding its services to include adoption, foster care, and other family support programs. Tonniges emphasized that all funding received by the nonprofit is publicly documented through government disclosures, audited, and reported in federal nonprofit filings.
In response to the controversy, the organization issued a public statement inviting Flynn and Musk to visit and learn firsthand about its operations. “We strongly encourage them to see how we transform federal grant funding into children, families, and lives saved,” the statement read.
Comments