Tech tycoon Elon Musk, who leads the U.S. Department of Government Efficiency (DOGE) said on Monday the Federal Emergency Management Agency (FEMA) improperly spent $59 million on luxury New York City hotels to house illegal migrants.
Musk said the expenditure contravenes current laws and defies an executive order by U.S. President Trump. The funds, which were meant for American disaster relief, were allegedly misallocated last week.
Musk said on X, "The DOGE team just discovered that FEMA sent $59M last week to luxury hotels in New York City to house illegal migrants. Sending this money violated the law and is in gross insubordination to the president’s executive order. That money is meant for American disaster relief. A clawback demand will be made today to recoup those funds."
Musk's statement sparked significant debate across social media and news outlets, with posts on X highlighting both support and criticism for his plan.
Acting FEMA Director Cameron Hamilton has acknowledged the payments, but has not yet responded to the specifics of Musk's allegations or the proposed clawback.
The controversy comes at a time when the former Biden Administration is being scrutinized for its handling of immigration and disaster relief funds, with U.S. President Donald Trump advocating for a comprehensive overhaul of FEMA.
The situation has raised questions about the allocation of emergency funds, the role of government agencies, and the broader implications for immigration policy and disaster response in the U.S.
As of early Monday afternoon, there was no official statement from the White House or FEMA regarding Musk's claims or the planned financial recovery actions.
U.S. Customs and Border Protection reported more than 10.8 million encounters nationwide with migrants from the start of fiscal year 2021 through the end of fiscal year 2024. Specifically, at the Southwest border, there have been over 8.72 million encounters.
Estimates suggest there could be around 1.7 million to 2 million "gotaways" – migrants who have evaded detection, adding to the total count of those entering illegally into the U.S.