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NY Archdiocese pitches $800M to settle child sex abuse claims — warns of bankruptcy if offer is rejected
Priscilla De · 2026-05-02 · via New York Post

The Archdiocese of New York has offered $800 million to settle claims that priests and lay staff sexually abused children — as Catholic church leaders warn of bankruptcy if the settlement isn’t accepted.

The potential global settlement, which still needs approval from all 1,300 alleged victims, comes with a $250,000 quick pay option for accusers who want a speedy resolution.

Otherwise, claims will be evaluated to determine how much each victim should be paid, said Jordan Merson, who represents more than 60 people who said they were sexually abused as minors.

Lawyer Jordan Merson speaks outside the Westchester County Courthouse.

Lawyer Jason Merson confirmed the Archdiocese of New York offered $800 million to victims of child sex abuse by priests and lay staff. Matt Spillane/The Journal News

“This proposed settlement is far better than the alternative of the New York Archdiocese likely filing for bankruptcy that would delay justice for these survivors for many years,” he told The Post on Friday, noting insolvency proceedings would cost the church hundreds of millions of dollars more in attorneys fees.

The prospect of a breakthrough comes after years of accusations directed at the archdiocese — the nation’s second-largest, representing millions of Catholics in Manhattan, The Bronx, Staten Island and seven upstate counties.

Cardinal Timothy Dolan, the now-former archbishop of New York, last year agreed to negotiate a settlement with victims.

He also began making financially painful moves, such as laying off staff and selling the former archdiocesan headquarters in Manhattan, to drum up $300 million to cover the likely astronomical cost.

Archbishop Ronald Hicks and his predecessor Timothy Dolan at the NYC St. Patrick's Day Parade.

Archbishop Roland Hicks has taken over the process of settling claims from Cardinal Timothy Dolan. Paul Martinka for New York Post

The crush of sex abuse claims has prompted other Catholic dioceses, including Albany, Rockville Centre and Rochester, to file for bankruptcy protection.

Dolan’s newly installed successor, Roland Hicks, acknowledged the risk of bankruptcy in a Friday letter to the archdiocese’s parishioners.

But he argued the settlement, if achieved, would provide compensation to “victim-survivors” without lengthy painful litigation.

The Terence Cardinal Cooke Center, at 1011 First Avenue in Manhattan.

The archdiocese has sold its former headquarters in Manhattan to help cover the settlement costs. Wikimedia

“The Archdiocese has sold off the majority of its real estate holdings and made significant cuts to our staff and other operational expenses,” he wrote.

“These cuts have been painful for us, but they were necessary measures to secure the resources needed to compensate victim-survivors.”

He added: “It cannot be denied that this has been a painful process – most significantly so for the victim-survivors and their families and loved ones who have suffered, in most cases, for decades.

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“I pray that all of us, as the Family of God, will come together to support and affirm these individuals and take these next steps to bring about some healing and peace.”

The $800 million offer was first reported by The New York Times on Thursday.

Attorney Mitchell Garabedian, who helped bring the clergy sex abuse scandal at the Archdiocese of Boston into the national spotlight more than two decades ago, said survivors have been searching for validation.

Archbishop Ronald Hicks speaks at The Cathedral Basilica of St. James before people take part in The Way of the Cross over the Brooklyn Bridge in New York City, on 03 April 2026.

Hicks informed parishioners about the potential settlement in a Friday letter. Adam Gray for New York Post

He represents 23 victims with claims against the New York Archdiocese.

“If the proposed settlement does occur it will provide some but not all survivors with that validation,” he told The Post on Friday. “But, none of the survivors will ever believe that the Catholic Church understands the evil of clergy sexual abuse and rightfully so.”

Merson said his clients are waiting to see if the agreement actually comes together.

“This has been a long time to get justice and they are hopeful but patiently waiting,” he said.

When asked for comment, a spokesman for the Archdiocese of New York referred The Post to Hicks’ letter.