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The phrase "a catastrophic setback for" is correct and usable in written English.
It can be used to describe a significant failure or obstacle that negatively impacts a person, organization, or situation.
Example: "The unexpected loss of funding was a catastrophic setback for the research project, delaying its progress by several months."
Alternatives: "a major blow to" or "a severe hindrance for".
Exact(1)
"Universities in the region and beyond should make every effort to take in Haitian students," she said in a statement, calling the damage to Haiti's education system "a catastrophic setback for a country already hit by other disasters".
Similar(59)
There will always someone whose life was apparently transformed by a grammar school, just as there will always be those for whom failing the 11-plus was a catastrophic setback.
By early 1968 the Soviet Union was so far behind the United States that the only way they could catch up was if NASA suffered a catastrophic setback.
But it has had catastrophic setbacks.
The 1970s was a catastrophic decade for the bond markets.
So, this has been a catastrophic result for the Coalition".
1944 had been a catastrophic year for the ZNDH.
The boycott lasted a year and was a major setback for polio eradication.
This is a catastrophic for two reasons.
Well, folks, a big setback for NASA.
Or a major setback for feminism?
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com