Homeland Security Fires FEMA Officials After Elon Musk Claims Migrants Were Being Housed in 'Luxury Hotels'

The Department of Homeland Security (DHS) has fired four Federal Emergency Management Agency (FEMA) officials following claims by Elon Musk that the agency had improperly allocated funds to house migrants in "luxury hotels" in New York City.

Acting FEMA Administrator Cameron Hamilton confirmed that payments had been suspended, and DHS stated that those responsible for the transactions would be held accountable.

Musk, who oversees the Department of Government Efficiency (DOGE), alleged on X that FEMA had sent $59 million the previous week for migrant housing. He added that the funds should have been used for disaster relief and claiming that the discovery revealed "gross insubordination to the President's executive order."

DHS confirmed the dismissal of the agency's chief financial officer, two program analysts, and a grant specialist through a statement on its website that emphasized that "under President Trump and Secretary Noem's leadership, DHS will not sit idly and allow deep state activists to undermine the will and safety of the American people."

Neither Musk nor Hamilton provided details about the specific payments, but the Associated Press reports that they are believed to have been part of the Shelter and Services Program, which reimburses cities and organizations for immigration-related expenses. It was also not clear where the $59 million figure cited by Musk came from.

The New York City Mayor's Office disputed Musk's characterization of the payments, clarifying that $81 million in federal reimbursements received last week covered expenses from November 2023 to October 2024, including hotel, security, food, and other costs.

According to comments by city spokeswoman Liz Garcia to The Associated Press, these funds were appropriated by Congress and allocated last year by FEMA. She also stated that New York City has never paid "luxury rates," with the average cost per night being $152, far below the rates of five-star hotels in Manhattan.

In the meantime, Musk continues his crusade to cut government spending with news also coming out on Tuesday that his Department of Government Efficiency (DOGE) is reportedly aiming to scrutinize budgets for the Department of Defense and the Department of Health and Human Services (HHS).