The Federal Emergency Management Agency took action after Elon Musk’s Department of Government Efficiency reported that the bureaucracy spent millions paying New York City hotels to house illegal immigrants.
On Monday, DOGE accused FEMA of sending $59 million “LAST WEEK to luxury hotels in New York City to house illegal migrants.” Musk said the move “violated the law and is in gross insubordination” with President Donald Trump’s Jan. 20 executive order prohibiting the distribution of public benefits to people living in the country illegally.
Caroline Hamilton, FEMA’s acting head, appeared to confirm the report in a social media post that thanked Musk and DOGE for uncovering the expenditures.
“Effective yesterday these payments have all been suspended from FEMA,” she said. “Personnel will be held accountable.”
A Department of Homeland Security spokeswoman also told the Washington Examiner that the person responsible for paying New York City $59 million would be fired.
“Individuals who circumvented leadership and unilaterally made this payment will be fired and held accountable,” DHS spokeswoman Tricia McLaughlin said. “Congress should have never passed bills in 2023 and 2024 asking FEMA to do this work. This stops now.”
Hundreds of thousands of illegal immigrants have flocked to New York City, where right-to-shelter laws require the Big Apple to provide temporary housing to those experiencing homelessness.
The controversy over federal payments to New York City hotels to house illegal immigrants appears to stem from a government program administered by FEMA that reimburses overwhelmed local and state governments struggling to provide emergency shelter to influxes of illegal immigrants.
The Shelter and Services Program is funded through Congress and administered by FEMA in partnership with U.S. Customs and Border Protection and the DHS.
A spokesperson for New York Mayor Eric Adams’s office said that it received $19 million in reimbursements from the federal government last week for housing illegal immigrants in hotels, according to ABC News.
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The Big Apple received $81 million last week in government reimbursements for immigration-related expenses made from November 2023 to October 2024, including hotel, security, food, and other costs. Spokeswoman Liz Garcia told the outlet the money came from funds appropriated last year by Congress that were allocated by FEMA. New York City has millions more in outstanding reimbursements, per Garcia.
The Washington Examiner reached out to the mayor’s office for comment.