Elon: FEMA Just Defied Trump, Sent $59 Million to NYC for Luxury Hotels for Illegals

Elon Musk, who is heading the Department of Government Efficiency, accused the Federal Emergency Management Agency of defying President Donald Trump’s orders by sending tens of millions of dollars to New York City to house illegal immigrants.

“The @DOGE team just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City to house illegal migrants,” Musk posted Monday on X.

“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 and instead is being spent on high end hotels for illegals!” he added. “A clawback demand will be made today to recoup those funds.”

Acting FEMA Administrator Cameron Hamilton responded to Musk’s post regarding $59 million being sent to New York, writing, “I want to thank the @DOGE
team for making me aware of this. Effective yesterday these payments have all been suspended from FEMA. Personnel will be held accountable.”

I want to thank the @DOGE team for making me aware of this. Effective yesterday these payments have all been suspended from FEMA. Personnel will be held accountable. @elonmusk https://t.co/UO7HVrLg7M

— Cameron Hamilton (@FEMA_Cam) February 10, 2025

The New York Post reported Tuesday that four FEMA employees have been fired.

“Effective immediately, FEMA is terminating the employment of four individuals for circumventing leadership to unilaterally make egregious payments for luxury NYC hotels for migrants,” DHS officials said in a statement, according to the Post.

The firings include FEMA’s chief financial officer, two program analysts, and a grant specialist, the Post said.

New York City officials have denied that the $59 million went to house migrants at luxury hotels, saying only $19 million was used for that purpose, while roughly $26 million went for food, security and other services and $13 million toward congregate shelters, the Post said.

“We have already spent over $7 billion on this crisis alone, and the previous administration committed only $237 million in funding to help house the migrants in our care and for future services,” a City Hall statement said, according to the Post.

“We have continued to receive previously allocated reimbursements through the past week. We will discuss this matter directly with federal officials.”

The news outlet noted that Congress allocated a separate relief fund to be administered by FEMA called the Shelter and Services program, which is separate from the disaster relief fund.

But in 2024, the Department of Homeland Security — which oversees FEMA — “directed Customs and Border Protection (CBP) to transfer $650 million of its FY2024 appropriation to FEMA for the Shelter and Services,” according to the Post.

Trump issued an executive order Jan. 24 establishing a council to assess how FEMA spends its money and its overall operations.

“Despite obligating nearly $30 billion in disaster aid each of the past three years, FEMA has managed to leave vulnerable Americans without the resources or support they need when they need it most,” the order read, in part.

“[FEMA] has lost mission focus, diverting limited staff and resources to support missions beyond its scope and authority, spending well over a billion dollars to welcome illegal aliens,” the document said.

Trump posted on Tuesday, “FEMA spent tens of millions of dollars in Democrat areas, disobeying orders, but left the people of North Carolina high and dry. It is now under review and investigation.”

Trump added, in his characteristic all-capital style, “THE BIDEN RUN FEMA HAS BEEN A DISASTER. FEMA SHOULD BE TERMINATED! IT HAS BEEN SLOW AND TOTALLY INEFFECTIVE. INDIVIDUAL STATES SHOULD HANDLE STORMS, ETC., AS THEY COME. BIG SAVINGS, FAR MORE EFFICIENT!!!”

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