GCFA Update and Frequently Asked Questions Regarding Boy Scouts' Bankruptcy
- gcfaumc
- Jan 15
- 2 min read
The United Methodist settlement involving the Boy Scouts of America (“BSA”) is final now that the United States Supreme Court has rejected a request to review the BSA bankruptcy case. What does that mean and what comes next?
Please note that this article was updated January 14, 2026.
So, what’s the background? How did we get here?
In February 2020, BSA filed for bankruptcy protection in Delaware in response to facing a significant number of lawsuits involving allegations of child sexual abuse. According to BSA, the bankruptcy filing was intended to permit BSA to “equitably compensate victims who were harmed during their time in Scouting and continue carrying out its mission for years to come.”
Because United Methodist local churches have been one of the largest collections of chartering organizations for Scout troops, a “United Methodist Ad Hoc Committee” – consisting of several chancellors, two bishops, and two lawyers employed by GCFA – was formed to advocate for United Methodist interests within the bankruptcy proceeding. The Committee’s involvement ultimately led to a negotiated settlement, which includes a contribution by United Methodists of $30 million.
In September 2022, the bankruptcy court approved a reorganization plan for BSA that included the settlement negotiated by the Committee. While the approved plan was supported by most bankruptcy participants, the court’s ruling was appealed to the United States District Court located in Delaware. On March 28, 2023, that district court released an opinion affirming approval of the reorganization plan.
Some survivors asked the United States Supreme Court to review the decision. On January 12, 2026 the US Supreme Court declined reviewing the case.
What does this mean?
By declining the appeal by sexual abuse survivors who opposed the bankruptcy plan, the lower court ruling is left intact, meaning that the United Methodist settlement remains intact.
What does it mean for my local Scout troop at my United Methodist church?
This specific ruling probably doesn’t mean much to the ongoing activities of Scout troops. Parallel to the bankruptcy, United Methodist leadership worked with BSA to develop relationship documents to replace the charter agreement previously used for establishing troops. The General Commission on United Methodist Men has compiled those documents, along with other helpful information, here.
Anything else I should know?
The United Methodist Ad Hoc Committee and its bankruptcy counsel, as well as other United Methodist leaders, are monitoring next steps for leaders and entities and will provide further updates.
