Elon Musk, leading the Trump administration's government spending cuts, has reported that FEMA spent millions on hotel accommodations for illegal immigrants last week. As head of the Department of Government Efficiency (DOGE), Musk is investigating federal spending and seeking to eliminate wasteful expenditures. His latest focus is FEMA, which recently raised concerns about insufficient funds during Hurricane Helene.

In a post on X, Musk stated, "The @DOGE team just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City to house illegal migrants." This sparked immediate controversy, especially considering prior criticisms of FEMA for allegedly prioritizing migrant aid over disaster relief during the Biden administration.

While Speaker Mike Johnson has clarified that emergency relief and immigration funds are separate within FEMA, he maintained that the agency should not be involved in funding the border crisis. FEMA collaborates with Customs and Border Control (CBP) and manages funds for the Shelter and Services Program (SSP), which provides assistance and housing to illegal immigrants released into the U.S.

Musk asserts that this expenditure violates the law and contradicts a presidential executive order aimed at improving FEMA's efficiency and priorities. He emphasized that the funds are intended for American disaster relief. New York City Hall confirmed receiving funds from the Biden administration for housing and supporting illegal immigrants, but clarified that these were not disaster relief funds. Of the $59.3 million, $19 million was for hotel costs, and the remainder covered other services.

The Department of Homeland Security (DHS) stated that those responsible for the payment will be held accountable. They echoed Secretary Kristi Noem's recent call for FEMA's restructuring, citing this incident as another example of the agency's mismanagement. Following Hurricane Helene, Republican lawmakers expressed concerns about FEMA's involvement in the border crisis potentially hindering its disaster response capabilities.

Former President Trump has also advocated for FEMA reform, suggesting that states manage their own disaster funding. He criticized FEMA's performance, calling it a "disaster" and suggesting its dissolution in favor of direct funding to states.