Elon Musk, head of the Department of Government Efficiency (DOGE), revealed on Monday that the Federal Emergency Management Agency (FEMA) allocated $59 million to luxury hotels in New York City to house illegal migrants, a move he claims violates federal law and President Donald Trump’s executive orders. Musk, who leads the temporary agency tasked with identifying and eliminating wasteful federal spending, announced that efforts are underway to recover the misused funds.
“The @DOGE team just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City to house illegal migrants,” Musk posted on X (formerly Twitter). “Sending this money violated the law and is in gross insubordination to the President’s executive order.”
READ :Homeless Venezuelan In Michigan Turns Himself In To ICE, Citing Intent To Commit Crimes
Musk emphasized that the funds were intended for American disaster relief, not for accommodating migrants in high-end hotels. “That money is meant for American disaster relief and instead is being spent on high-end hotels for illegals!” he continued. “A clawback demand will be made today to recoup those funds.”
The details of the alleged payment remain unclear, as neither FEMA nor DOGE officials have provided additional comments or documentation. However, the revelation has sparked outrage among critics who argue that taxpayer dollars should not be used to fund luxury accommodations for migrants, especially when disaster relief efforts are underfunded.
This is not the first time FEMA has faced scrutiny over its handling of migrant-related expenses. In October, former White House press secretary Karine Jean-Pierre denied that the Biden administration was using FEMA funds for migrant housing. However, in 2022, she suggested that the agency was assisting cities grappling with the migrant crisis.
READ: DHS Secretary Kristi Noem Condemns ICE Raid Memo Leak, Vows to Prosecute “Crooked Deep State Agents”
On his first day back in office, President Trump signed an executive order temporarily suspending refugee resettlement and freezing federal grants and loans pending a review of government spending. Although the courts later blocked the freeze, the administration has continued to prioritize stricter immigration policies and fiscal accountability.
New York City, a sanctuary city with laws limiting cooperation between local law enforcement and federal immigration authorities, has struggled to manage the influx of migrants. Since spring 2022, approximately 230,000 migrants have arrived in the city, overwhelming its resources. To address the crisis, city officials have converted several upscale hotels into emergency shelters, including the four-star Collective Paper Factory and The Row.
The Collective Paper Factory, described as a “chic” hotel, features a restaurant, gym, bar, meeting rooms, and communal spaces. Similarly, The Row has been praised for its luxurious amenities. According to travel booking service, Kayak, a four-star hotel, is considered “luxury lodging,” offering spacious rooms, high-quality linens, pillowtop mattresses, bathrobes, slippers, minibars, and upscale toiletries.
READ: President Trump Proclaims First-Ever ‘Gulf Of America Day’ On Feb. 9
New York City’s Department of Homeless Services has reportedly sought contracts with local hotels to provide approximately 14,000 rooms for migrant housing through 2025. The city anticipates spending over $2.3 billion on migrant housing for the current fiscal year and the past two years combined, with a significant portion allocated to hotel rent.
The controversy comes amid ongoing debates over immigration policy and federal spending. Critics argue that sanctuary cities like New York should bear the financial burden of their policies, while advocates emphasize the humanitarian need to support migrants fleeing violence and poverty.
FEMA has also faced internal scrutiny in recent months. In November, the agency launched an investigation after reports surfaced that a supervisor instructed disaster relief workers to avoid Florida homes with Trump signs during Hurricane Milton recovery efforts.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.