The acting head of the Federal Emergency Management Agency (FEMA) announced Monday that payments sent to New York City for migrant housing have been suspended, following criticism from Elon Musk.
Musk, who leads the Department of Government Efficiency and has been working to cut federal spending, alleged on social media that FEMA had allocated $59 million last week for luxury hotel accommodations for illegal migrants. He stated that the funds, intended for disaster relief, would be reclaimed.
Cameron Hamilton, FEMA’s acting administrator, confirmed the suspension, stating that staff responsible for the payments would be held accountable. The move comes amid broader efforts by the Trump administration to reassess FEMA’s role and reduce its budget.
New York City officials disputed Musk’s claim, stating that the payments were allocated by Congress last year and used for various costs related to migrant care, including shelter, food, and security. The city also noted that it has received no official notice of funding suspension.
The payments in question were likely made under the Shelter and Services Program, which provides reimbursement for immigration-related expenses. FEMA did not directly respond to inquiries, but a Department of Homeland Security spokesperson referenced recent remarks by Secretary Kristi Noem, who called for significant reforms to FEMA.
The issue highlights ongoing debate over federal funding for migrant housing. Critics argue that taxpayer dollars should not be used to support right-to-shelter policies in cities like New York, while others contend the funding was legally allocated and necessary to manage the influx of migrants.
The controversy comes as the Trump administration considers a major overhaul of FEMA. The president has suggested dismantling the agency in its current form and shifting responsibilities to other departments.
Meanwhile, Republican lawmakers have criticized FEMA’s response to recent natural disasters and questioned its broader role in federal spending.
Hamilton, a former Navy SEAL with limited experience in disaster management, has been vocal about shifting FEMA’s focus toward border security. Project 2025, a policy framework for Trump’s second term, has proposed relocating FEMA and altering the criteria for federal disaster assistance, potentially shifting more costs to state governments.
