Elon Musk alleges that the Federal Emergency Management Agency (FEMA) has misused federal funds, violating emergency spending laws.
Elon Musk, now advising President Trump and heading the Department of Government Efficiency (DOGE), claims FEMA illegally spent $59 million of taxpayer money on luxury New York City hotels for undocumented immigrants. He demands immediate reimbursement, arguing the funds should have been used for disaster relief.
Musk, via a Monday X post, accused FEMA of misusing funds for housing illegal migrants in upscale hotels. He stated, “The DOGE team just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City to house illegal migrants,” adding, “That money is meant for American disaster relief and instead is being spent on high end hotels for illegals!”
Musk, tasked with cost-cutting within the federal government, labeled the spending “gross insubordination,” a breach of a presidential executive order, and promised recovery of the funds.
Musk offered no supporting evidence for his $59 million figure.
New York City officials counter that the migrant care funding was Congressionally appropriated and allocated by FEMA last year.
FEMA’s acting administrator, Cameron Hamilton, responded to Musk’s accusations, announcing a suspension of payments as of Sunday. Hamilton posted, “I want to thank the DOGE team for making me aware of this,” adding, “Effective yesterday these payments have all been suspended from FEMA. Personnel will be held accountable.”
However, FEMA spokesperson Liz Garcia told ABC News that the city hasn’t been notified of any funding halt and that reimbursements continued through last week. She stated the issue will be addressed with federal officials.
President Trump has publicly expressed dissatisfaction with FEMA, even suggesting its abolishment. He established a review council upon taking office in January to assess the agency’s disaster response.
Trump asserts that despite allocating almost $30 billion annually to disaster aid for three years, FEMA has inadequately supported vulnerable Americans during emergencies.
FEMA, established in 1979, handles federal disaster response. The agency has faced past criticism regarding its handling of crises like Hurricanes Katrina (2005) and Maria (2017).