After shutting down the U.S. Agency for International Development (USAID) last week, Elon Musk’s Department of Government Efficiency (DOGE) has now turned its focus to financial mismanagement within the Federal Emergency Management Agency (FEMA).

Tesla CEO and X owner Elon Musk gestures on stage as he prepares to speak inside the Capital One arena on the inauguration day of Donald Trump’s second Presidential term, in Washington on January 20, 2025.

Musk posted on X early Monday morning, exposing FEMA’s use of disaster relief funds for housing illegal migrants in upscale New York City hotels.

“The @DOGE team just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City to house illegal migrants.

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

He continued, “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.”

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As Musk’s DOGE team investigates FEMA’s spending practices, Homeland Security Secretary Kristi Noem visited North Carolina over the weekend to assess Hurricane Helene recovery efforts.

South Dakota Gov. Kristi Noem (R-SD), President Donald Trump’s pick to lead the Department of Homeland Security, faces senators Friday at a confirmation hearing on January 17, 2025 in Washington.

Speaking about FEMA’s response efforts, Noem reported significant progress in addressing backlogged cases from the disaster.

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“President Trump came in and visited these communities and in less than 20 days secured over $54 million for families in need and registered 2,600 families that needed assistance and hadn’t gotten that kind of help to get signed up for the programs that we have,” Noem stated.

She further noted the rapid progress in resolving claims: “In the past five days, we have decreased the number of open cases by almost 80 percent. President Trump is ensuring that communities aren’t forgotten.”

The discovery of FEMA’s spending on migrant housing comes as the Trump administration continues its efforts to cut wasteful government expenditures and redirect funds to programs benefiting American citizens.

With Musk’s DOGE team leading the charge, the administration is expected to continue evaluating and restructuring federal agencies to ensure taxpayer dollars are properly allocated.

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With a clawback request for the misallocated FEMA funds now in motion, further scrutiny of government spending practices is likely to follow in the coming weeks.

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