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OUTnewcomers, an LGBTQ group in Boston, announced it returned city grant funding to the mayor’s office after its plans to offer LGBTQ migrants up to $500 in "wellness" perks, such as yoga classes and massages, clashed with local government's expectations for the funding.

"OUTnewcomers will be ceasing all related programming and will return any funds received for this initiative," the group said in a Friday press release.

The purpose and scope of the program, called "Belonging Matters," clashed with statements from city officials about their expectations for the grant, prompting questions about how Boston distributes and oversees grants to outside advocacy groups.

"No funds have been distributed or directed for these purposes," a city spokesperson told Fox News Digital in response to inquiries about the program.

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Mayor Michelle Wu speaks during a press conference with city leaders on violence and drug use in Downtown Crossing, Boston, on Feb. 26. (Stuart Cahill/Boston Herald via Getty Images)

"This organization received a $7,500 grant through a city program to support mental health services. Those funds were not designated for and may not be used for the voucher program referenced," the spokesperson said.

OUTnewcomers had been listed as one of 45 recipients of a larger $200,000 push to support LGBTQ communities in Boston. The $200,000 figure was approved by Wu last year as a part of the Mayor’s Office of LGBTQ+ Advancement (MOLA).

According to Boston officials, OUTnewcomers was awarded a $7,500 mini-grant allocated from the 2026 budget.

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Boston Mayor Michelle Wu smiles while addressing supporters during her re-election campaign launch at the Cyclorama at Boston Center for the Arts in Boston, Massachusetts, on April 5. (Erin Clark/The Boston Globe via Getty Images)

"These investments represent our continued dedication to uplifting LGBTQ+ Bostonians by putting resources directly into the hands of trusted community organizations," Wu said in a press release at the time.

The mayor's office declined to answer questions about the funds' initial approval.

The registration form for Belonging Matters offered applicants yoga, breathwork and meditation, gym memberships, creative arts, peer support, storytelling, nature-based wellness and hairstyling. If approved, the program promised applicants $250 to $500 in "wellness allowances" evaluated on a case-by-case basis.

But the organization later described the program as offering vouchers of $50 or less, creating a discrepancy between how the initiative was initially presented and how it was later characterized.

Even before returning the city’s grant funding, OUTnewcomers announced that it has paused Belonging Matters, citing "security concerns."

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The Boston skyline features skyscrapers and waterfront views in Boston, Massachusetts. (Getty Images)

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"This is an incredibly difficult decision," said Sal Khan, Founder of OUTnewcomers.

"Our work has always been rooted in care, dignity, and community support. However, the severity of the threats we have received has made it impossible to continue this program safely. The safety of our team and community members must come first," OUTnewcomers wrote in a press release.

Khan did not respond to requests for comment from Fox News Digital.

Leo Briceno is a politics reporter for the congressional team at Fox News Digital. He was previously a reporter with World Magazine.

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