Buffalo diocese files $274 million abuse settlement plan after five years in bankruptcy

The Catholic Herald • October 3, 2025

The Diocese of Buffalo in New York has filed a reorganisation plan that would bring to an end nearly five years in bankruptcy court following one of the largest settlements of clergy abuse cases in the United States.

The plan, submitted to a federal judge this week, outlines how the diocese intends to meet the costs of a compensation package worth almost $274 million to be distributed among more than 900 survivors of sexual abuse. A trust will be created to assess claims and determine how much each individual will receive.

The settlement, the second largest of its kind in New York State, comes after lengthy negotiations between the diocese, insurers, and legal representatives of survivors. In May, the diocese agreed to contribute $150 million, raised largely from its parishes, many of which have been forced to close or merge as a result. Last week, two insurers confirmed they would contribute a further $122.5 million, with additional companies expected to follow.

The diocese first filed for Chapter 11 bankruptcy protection in February 2020, as hundreds of claims were brought under New York’s Child Victims Act. Since then, it has remained in court while talks over compensation proceeded, with Bishop Michael Fisher, appointed in 2021, pledging that justice for survivors would remain the diocese’s highest priority.

The Diocese of Buffalo serves more than half a million Catholics across eight counties of western New York. It represents 163 parishes and 34 Catholic elementary schools, though numbers have declined in recent years amid falling attendance, fewer vocations to the priesthood, and the rising cost of litigation. In 2024, the diocese announced a programme to “rightsize and reshape” around a third of its parishes, citing both financial pressures and a shortage of clergy.

According to diocesan records, more than 80 priests and employees have had credible accusations of abuse made against them.

The Buffalo settlement follows large-scale agreements reached by other dioceses in the United States. The largest in New York remains the Diocese of Rockville Centre on Long Island, which agreed to pay $300 million.

Nationally, abuse settlements involving the Catholic Church have reached into the billions, with dioceses in states such as California, Oregon, and Minnesota also forced into bankruptcy in recent years.

In 2002, the Archdiocese of Boston was at the centre of the scandal after hundreds of cases emerged, leading to widespread reforms in safeguarding procedures throughout the Church. Yet the legal and financial consequences continue to unfold more than two decades later, leaving dioceses such as Buffalo to restructure their pastoral and institutional life while attempting to make restitution to victims.

(Photo by AARON LYNETT/AFP via Getty Images)