Grassley is rotating back to Villarreal for answers for Congress amid "lazy and obstructive" responses to requests for records with a letter this week.
Trump's Justice Department has cut the funding to Southwest Key, but it also dropped a Biden-era civil case against it this week.
"Out of continuing concerns relating to these placements, HHS has decided to stop placement of unaccompanied alien children in Southwest Key facilities, and to review its grants with the organization," HHS wrote in a statement.
"In view of HHS' action, the Department of Justice has dismissed its lawsuit against Southwest Key."
Southwest Key Programs is "pleased" about the case dismissal and "strongly denied the claims relating to child sexual abuse in our shelter," the Post reported.