Government Efficiency lead Elon Musk claimed on Monday that just last week, the Federal Emergency Management Agency (FEMA) sent $59 million “to luxury hotels in New York City to house illegal migrants.”

The Details: Musk said the funds were “just discovered” by the Department of Government Efficiency (DOGE). FEMA has halted payments for migrant housing and four FEMA employees have reportedly been fired over the alleged $59 million payment.

For Context: In May 2024, The New York Times (Lean Left bias) reported that hotel prices had jumped because 135 of the city’s 680 hotels were converted to migrant shelters. Over the weekend, Homeland Security Secretary Kristi Noem said the Trump administration should “get rid of FEMA the way it exists today.” Trump’s administration has slashed federal funding in several different sectors so far.

From The Right: Fox News (Right) said City Hall confirmed that the city received Biden administration-allocated funds “through the past week” that were for housing unauthorized migrants. Reportedly, of the $59.3 million, $19 million was for hotels, while the other $40 million was for additional support costs. 

From The Left: Associated Press (Left) wrote that Mayor Eric Adams’ office said the city “received $81 million in payments from the federal government for immigration-related costs last week in two separate pieces — one of which was about $59 million, with $19 million for direct hotel costs.” Associated Press also said “Musk gave no evidence to support his claim” and that “It was not clear where the $59 million figure came from.”