Musk accuses FEMA of illegally sending $59 million to NYC 'luxury' hotels for migrants

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NEW YORK (1010 WINS) – Elon Musk accused the Federal Emergency Management Agency of unlawfully sending $59 million last week to house undocumented migrants in New York City "luxury" hotels in an X post early Monday morning.

“Sending this money violated the law and is in gross insubordination to the President’s executive order,” Musk wrote.

City officials pushed back against the claim, stating that the $59 million is part of planned FEMA funding to help cover migrant housing costs. The money is part of a larger $118 million in FEMA funding under the Shelter and Services Program (SSP) to help manage the migrant crisis in New York City, according to city records.

Adams spokeswoman Liz Garcia also told the Daily News that while some migrants, particularly families with children, are being housed in hotels, they do not fall under the "luxury" category. She added that as of early Monday afternoon, the administration had not received any official clawback request from the federal government.

Musk also wrote that the funds would be recouped, though it remains unclear how he or Trump could demand the return of already approved and disbursed FEMA funds. “That money is meant for American disaster relief and instead is being spent on high-end hotels for illegals! A clawback demand will be made today to recoup those funds,” he wrote.

FEMA’s total expected contribution to New York City’s migrant response is $237.3 million, with $74.4 million already received, including $25.5 million from the SSP and $49 million from the Emergency Food and Shelter Program (EFSP). City officials stated that only $19 million of the total federal funding has been spent on hotels, covering both high-end and budget accommodations, according to the New York Post.

Nearly two weeks ago, President Donald Trump said he was considering “getting rid of” FEMA after visiting disaster zones in California and North Carolina.

Since 2011, FEMA has spent $68.2 billion on disaster relief, excluding pandemic-related aid and oil spill responses. Additional billions, mostly from the Department of Housing and Urban Development, have gone toward helping individuals rebuild after disasters.

Trump established the FEMA Review Council at the end of January, which will hold public meetings and submit a report to the President within 180 days of its first meeting.

The Associated Press contributed to this report

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