Elon Musk’s office reveals misuse of funds as FEMA halts payments and orders internal investigation
The Federal Emergency Management Agency (FEMA) is facing criticism and an internal investigation following revelations that fifty-nine million dollars were allocated to house illegal migrants in luxury hotels, including high-end accommodations in New York City.
The spending was exposed by
Elon Musk’s Department of Government Efficiency (DOGE), prompting public outrage and immediate action by FEMA’s leadership.
FEMA had previously reported budget constraints, stating that it lacked sufficient resources to fully support disaster relief efforts following hurricanes in Florida and the Carolinas and the devastating wildfires in Hawaii.
However, DOGE’s findings showed that a significant portion of FEMA’s recent federal funding was used for hotel expenses to house illegal migrants, drawing widespread criticism over the agency’s spending priorities.
Cameron Hamilton, the newly appointed acting FEMA administrator, acknowledged the issue, ordered an immediate halt to further payments under the hotel contracts, and launched an internal investigation.
Hamilton emphasized the need to hold accountable the officials who approved the funding and ensure that such financial mismanagement does not recur.
Elon Musk, in public statements through his office, described the situation as part of a broader pattern of wasteful spending within federal agencies.
According to Musk, funds that should have been allocated to assist American citizens affected by natural disasters were instead diverted to unnecessary expenditures, raising concerns about FEMA’s financial oversight.
The investigation adds to ongoing pressure on FEMA, which has faced widespread criticism over its disaster response capabilities and management of federal funds.
Federal investigators are expected to examine how the allocation decisions were made and identify the officials responsible for approving the payments.
The investigation is currently underway, and FEMA has yet to provide a timeline for its completion.
Meanwhile, Musk’s Department of Government Efficiency has stated that it will continue monitoring federal agencies for instances of corruption, mismanagement and financial inefficiency.