US agency spent millions on luxury hotels for undocumented immigrants, says Musk

FEMA faces allegations of breaching federal law by allocating emergency funds for migrant assistance. Read Full Article at RT.com

US agency spent millions on luxury hotels for undocumented immigrants, says Musk
FEMA has been accused of violating federal law by misallocating emergency funds for migrants.

Elon Musk has claimed that the US Federal Emergency Management Agency improperly spent $59 million on luxury hotel stays for undocumented migrants. He is demanding that these funds be recovered, asserting that the money should have been designated for disaster relief instead.

Musk, a prominent advisor to President Donald Trump and the head of the newly established Department of Government Efficiency, criticized FEMA on X on Monday for allegedly misusing taxpayer money to provide upscale accommodations for illegal migrants 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!”

As the leader of DOGE, Musk has focused on finding ways for the government to reduce costs and the federal workforce, labeling this expenditure as “gross insubordination” that defies a presidential executive order. He indicated that steps would be taken to retrieve the funds.

No evidence was provided to substantiate Musk’s claims, and it was unclear where the $59 million figure originated.

In response, New York City officials clarified that the funds allocated for assisting migrants had been appropriated by Congress and designated to the city by FEMA the previous year.

Cameron Hamilton, the agency’s acting administrator, shared Musk’s remarks and noted that 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 spokesperson Liz Garcia told ABC News that the city hadn’t been notified of any funding pause and noted that federal reimbursements had continued through the previous week. She stated that the issue would be addressed directly with federal officials.

Trump has expressed strong discontent with FEMA, even contemplating its dissolution during his recent visits to disaster-affected areas in North Carolina and California. After taking office, he signed an executive order to establish a review council for the agency, citing concerns about its handling of recent disasters.

Despite allocating nearly $30 billion in disaster aid annually over the past three years, Trump has stated that FEMA has failed to adequately support vulnerable Americans during critical times.

Established in 1979, FEMA is tasked with coordinating the federal government's response to natural and man-made disasters and has faced criticism for its management of various emergencies, including Hurricane Katrina in 2005 and Hurricane Maria in 2017.

Navid Kalantari contributed to this report for TROIB News