The acting head of the Federal Emergency Management Agency (FEMA) has stopped payments to New York City meant for housing migrants. This decision came after Elon Musk criticized the payments on social media.
Musk, who leads the Department of Government Efficiency, claimed that FEMA sent $59 million last week to luxury hotels in New York City for housing migrants. He said this money was meant for disaster relief and would be taken back. Cameron Hamilton, FEMA’s acting administrator, confirmed that the payments were paused as of Sunday.
However, Musk did not provide proof of his claim, and New York City officials stated that the money was approved by Congress last year and legally allocated by FEMA. A city spokesperson, Liz Garcia, said they have not been officially informed of any funding suspension and will discuss the issue with federal officials.
The payments in question likely came from the Shelter and Services Program, which helps local governments and organizations cover costs related to immigration. FEMA did not answer questions about the payments, but a Department of Homeland Security spokesperson said that those responsible for issuing the funds without proper authorization would be fired.
When migrants arrive in the U.S., they are often released because federal detention centers are full. Local and state governments, along with nonprofits, usually provide them with food and shelter. In 2019, Congress approved federal reimbursements for these expenses, leading to the creation of the Shelter and Services Program. This funding is separate from FEMA’s disaster relief fund.
Republicans have criticized the program, wrongly claiming it takes money from disaster victims. Some also argue that taxpayer money should not go to cities like New York, where laws require providing shelter to all homeless individuals.
New York City officials said they received $81 million from the federal government last week for immigration-related expenses, including hotel stays, security, and food. Of that, about $59 million was for hotels. The city denies paying luxury rates, stating the average hotel cost is $152 per night, much lower than five-star hotel rates in Manhattan.
Musk called the payments “gross insubordination” and said the money would be taken back. However, officials have not explained where the $59 million figure came from.
Meanwhile, discussions about FEMA’s future continue. Former President Trump has suggested possibly dismantling FEMA, and his allies have proposed moving the agency to another department or changing its disaster funding process.
