Elon Musk alleged early Monday that the Federal Emergency Management Agency (FEMA) sent $59 million in emergency funds last week to luxury hotels in New York City to house undocumented migrants.
The claim, made in an early morning post on X, suggests that the funds were discovered by Musk’s Department of Government Efficiency (DOGE), which is responsible for reducing government overspending.
Illegal spending uncovered, Musk claims
“Sending this money violated the law and is in gross insubordination to the president’s executive order,” Musk wrote.
“That money is meant for American disaster relief and instead is being spent on high-end hotels for illegals,” he continued. “A clawback demand will be made today to recoup those funds.”
The accusation comes as President Donald Trump continues his push to overhaul FEMA, an effort that could potentially lead to the agency being shut down altogether.
Trump’s call for FEMA reform
Last month, Trump signed an executive order establishing a council to review FEMA operations, citing concerns over alleged political bias in the agency.
Under the order, the council must hold its first meeting within 90 days and provide a detailed report on its findings within 180 days.
Survivors left behind while FEMA funds hotels
Days before signing the order, Trump visited survivors of Hurricane Helene, many of whom remain homeless months after the disaster. The president expressed frustration over FEMA’s handling of emergency relief, calling it “not on the ball.”
“We’re going to turn it all around,” Trump told a group of federal and local officials. He then suggested that FEMA may need a complete overhaul—or possibly even elimination.
“I think, frankly, that FEMA’s not good,” Trump said.
Federal funding under scrutiny
FEMA is responsible for coordinating disaster response, providing aid, and overseeing emergency management nationwide. Over recent years, its funding has surged in response to extreme weather events.
However, Musk and Trump argue that the agency has mismanaged resources, prioritizing non-citizens over American disaster victims. Musk’s claim that FEMA funneled millions into luxury hotels for migrants only adds to growing concerns about the agency’s effectiveness.
As DOGE moves to reclaim the $59 million, questions remain about FEMA’s future under Trump’s administration.
