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Headline Roundup February 11th, 2025

Elon Musk Claims FEMA Sent $59M to NYC Hotels to House Migrants Last Week

Summary from the AllSides News Team

Government Efficiency lead Elon Musk claimed on Monday that just last week, the Federal Emergency Management Agency (FEMA) sent $59 million “to luxury hotels in New York City to house illegal migrants.”

The Details: Musk said the funds were “just discovered” by the Department of Government Efficiency (DOGE). FEMA has halted payments for migrant housing and four FEMA employees have reportedly been fired over the alleged $59 million payment.

For Context: In May 2024, The New York Times (Lean Left bias) reported that hotel prices had jumped because 135 of the city’s 680 hotels were converted to migrant shelters. Over the weekend, Homeland Security Secretary Kristi Noem said the Trump administration should “get rid of FEMA the way it exists today.” Trump’s administration has slashed federal funding in several different sectors so far.

From The Right: Fox News (Right) said City Hall confirmed that the city received Biden administration-allocated funds “through the past week” that were for housing unauthorized migrants. Reportedly, of the $59.3 million, $19 million was for hotels, while the other $40 million was for additional support costs. 

From The Left: Associated Press (Left) wrote that Mayor Eric Adams’ office said the city “received $81 million in payments from the federal government for immigration-related costs last week in two separate pieces — one of which was about $59 million, with $19 million for direct hotel costs.” Associated Press also said “Musk gave no evidence to support his claim” and that “It was not clear where the $59 million figure came from.”

Featured Coverage of this Story

FEMA says it’s halting payments for migrant housing in New York after Musk blasts money for hotels
FEMA says it’s halting payments for migrant housing in New York after Musk blasts money for hotels

AP Photo/Matt Rourke

News

The acting head of the federal agency responsible for responding to disasters said Monday that he’s suspending payments sent to New York City to house migrants and that staff who made them will be held accountable, after Elon Musk blasted the transactions on his social media platform.

Musk, who as head of the Department of Government Efficiency has consolidated control over much of the federal government and is working to cut costs and shrink the workforce, posted on X that his team “just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City...

Open on Associated Press
DOGE focuses on millions in migrant hotels billed to US taxpayers as DHS Sec. Noem targets FEMA
News

The government's leading disaster relief agency reportedly spent millions on hotels for illegal immigrants just last week, according to Elon Musk, who is leading the Trump administration's efforts to cut government spending.

The Department of Government Efficiency (DOGE), headed by the tech billionaire, has been conducting a sweep of federal funding and identifying areas in which "waste" within the government can be slashed. Musk found his most recent target in the Federal Emergency Management Agency (FEMA), the government's disaster relief branch that recently sparked concern over a reported lack of funds during Hurricane...

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