AUSTIN (KXAN) — Refugee Services of Texas, the state’s largest refugee resettlement agency, is permanently closing after the agency was strapped with a “severe” budget shortfall.

KXAN reported earlier this month the agency was laying off half its staff and closing offices in Fort Worth and Houston.

In a press release Friday, the agency said those “drastic measures” were not enough to reduce the budget shortfall. The closure affects a further 150 employees.

“It is with heavy hearts that we have come to this decision,” said CEO David McKeever. “This agency has faithfully carried out its mission to serve vulnerable populations since its founding in 1978 and has touched thousands of lives along the way. This decision was not made lightly.”

All current clients are being referred to other state or national resettlement programs, the release said.

The Austin location will now be overseen by Episcopal Migration Ministries, a national refugee resettlement agency. Another national agency, Church World Service, will manage the Amarillo and Dallas offices. Clients in San Antonio will be overseen by other resettlement agencies working in the city.

Refugee Services of Texas served 976 clients between October 2022 and April 2023, according to the release. Since its founding in 1978, the agency has resettled more than 26,000 refugees.

“We wish to thank all of our employees and the thousands of supporters and volunteers who have helped Refugee Services of Texas touch so many lives over the years,” McKeever said. “We urge them to continue this important work and find ways to volunteer at other resettlement agencies who will certainly need their help.”