Federal employees are set to be dismissed after DHS discovered unauthorized payments made by FEMA for housing illegal immigrants in New York City. The funds, totaling $59 million, were used to cover hotel expenses despite a direct order from President Donald Trump to halt such spending.
DOGE, under the leadership of Elon Musk, uncovered the payments and flagged them as a violation of federal directives. The Roosevelt Hotel, a property owned by Pakistan’s government, was one of the recipients. DHS has stated that those involved in the decision to process the payments will be held accountable.
DHS Secretary Kristi Noem has voiced support for reforming FEMA, stating that the agency should not operate as it currently does. Concerns over FEMA’s financial practices have mounted in recent years, particularly regarding its handling of disaster relief funds.
The city of New York confirmed receiving the funds and stated that $19 million was spent directly on hotel costs, while the rest covered additional services. Officials claim the money was allocated under past agreements before Trump’s order was issued.
Republican leaders have argued that FEMA should focus exclusively on disaster relief rather than funding programs tied to immigration. Speaker Mike Johnson has insisted that even though the agency has separate budgets, it should not play a role in handling the border crisis.
Trump has repeatedly criticized FEMA’s effectiveness, stating that states should manage their own disaster relief programs instead. His administration is reviewing FEMA’s structure, with some officials pushing for a shift in its responsibilities.
