DHS officials are taking disciplinary action against FEMA employees who authorized a multimillion-dollar payment to New York City for migrant housing. The funding, which violated President Donald Trump’s executive order, has sparked controversy over FEMA’s financial priorities.
DOGE, led by Elon Musk, discovered that FEMA allocated $59 million to house illegal immigrants in luxury hotels. The Roosevelt Hotel, owned by the Pakistani government, was among the recipients. DHS has confirmed that those responsible will be removed from their positions.
McLaughlin, a DHS spokesperson, stated that “individuals who circumvented leadership and unilaterally made this payment will be fired and held accountable.” The payments were made despite Trump’s directive to stop FEMA’s involvement in migrant housing.
FEMA has previously faced scrutiny for its funding choices. Last year, the agency was criticized for allegedly lacking sufficient resources to assist Hurricane Helene victims while continuing to direct money toward migrant accommodations. Republican lawmakers have pointed to this as an example of government mismanagement.
New York City, which has spent billions managing the migrant crisis, confirmed that it received federal funds. Of the $81 million sent last week, $19 million was used for hotels, while the remainder covered services such as food and security. The city insists that these payments were allocated under past funding agreements.
Trump has long questioned FEMA’s effectiveness and has floated the idea of restructuring or eliminating the agency altogether. Secretary Noem has echoed those concerns, arguing that FEMA’s role should be reassessed as part of broader government reforms.
