US agency spent millions to house illegals in luxury hotels

Russia Today

11-02-2025

Elon Musk has accused the US Federal Emergency Management Agency (FEMA) of unlawfully spending $59 million on luxury hotel accommodations for undocumented migrants. He called for the funds to be recovered immediately, insisting that the money should have been allocated for disaster relief instead.
Musk, now one of US President Donald Trump's key advisors and head of the newly created Department of Government Efficiency (DOGE), attacked FEMA on X on Monday for allegedly misusing millions of dollars in taxpayer funds to house illegal migrants in high-end hotels in New York City.
'The DOGE team just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City to house illegal migrants,'
he wrote.
'That money is meant for American disaster relief and instead is being spent on high end hotels for illegals!'
Musk, who as the head of DOGE has taken the lead on seeking ways for the federal government to cut costs and reduce the workforce, called the expenditure a
'gross insubordination'
defying a presidential executive order and said the money would be clawed back.
The billionaire provided no evidence to support his claim, and it was unclear where the $59 million figure came from.
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Meanwhile, New York City officials stated that the funds it received for migrant care were appropriated by Congress and allocated to the city by FEMA last year.
Cameron Hamilton, the agency's acting administrator, reposted Musk's comments and said the payments had been suspended as of Sunday.
'I want to thank the DOGE team for making me aware of this,'
Hamilton posted.
'Effective yesterday these payments have all been suspended from FEMA. Personnel will be held accountable.'
FEMA Spokeswoman Liz Garcia told ABC News the city hasn't been informed of any funding pause, adding that reimbursements from the federal government had continued through last week. The matter will be addressed directly with federal officials, she said.
Trump has been vocal about his dissatisfaction with FEMA, even suggesting scrapping it during a recent trip to disaster areas in North Carolina and California. Upon assuming office in January, he signed an executive order establishing a review council to evaluate the agency, citing concerns over its response to recent disasters.
Despite committing nearly $30 billion in disaster aid annually for the past three years, FEMA has left vulnerable Americans without the support they need in critical times, according to Trump.
FEMA, established in 1979, is responsible for coordinating the federal government's response to natural and man-made disasters. The agency has faced criticism over the years for its handling of various emergencies, including Hurricane Katrina in 2005 and Hurricane Maria in 2017.