FEMA, which unpacks mask claims, sent $59 million to New York to house immigrants in “luxury hotels”

On February 10, 2025, tech monarch and US government advisor Elon Musk discovered that his team of newly created government efficiency sent $59 million to a “luxury hotel” in New York I posted this to X. The weekly city begins on February 3rd, which houses immigrants who live illegally in the United States.

New York City received about $59 million and received additional funding from FEMA’s Shelter and Services program at the beginning of February. Congress will distinguish this money separately from the funds it designates for disaster relief.

However, contrary to masks’ claims, this money is a refund for expenses already paid by the city, not directly paid to the hotel, but rather “luxury” or so on. Of the approximately $59 million awarded with the FEMA, $19 million was spent on hotel expenses, according to the Mayor of the New York City. The city had not paid a “luxury fee” for the hotel, the mayor’s office said.

Following Musk’s February 10th X Post, FEMA’s representative Cameron Hamilton said that payments for the issue have been suspended at X and that “people are responsible.” The Department of Homeland Security fired four FEMA employees on February 11th, including the agency’s Chief Financial Officer. DHS, the agency FEMA, claimed that the four staff “averted leadership to make terrible payments for luxury NYC hotels for immigrants.”

On February 12, New York City Director Bradlander told reporters that the $80.5 million FEMA fund was cancelled from New York City on February 11 after the city received the funds the previous week.

New York City Mayor Eric Adams also posted a funding (archive) on February 12th. Both Adams and Lander said they were trying to get the funds back.

DHS’s assistant secretary of public relations, Tricia McLaughlin, said in a statement (archive) on February 12th that DHS secretary Christie Noem “crowned” the money Musk mentioned on February 10th, and Lander He said Adams has identified him as a femme. Shelter and Services Program Fund. Noem said the money was used to fund the “NYC Immigrant Hotel.”

The Mayor’s office confirmed via email that DHS sent funds to New York on February 4th and that the funds were seized on February 12th. According to Lander, the seized funds consisted of $58.6 million from FEMA’s Shelter and Services program – allotted. $21.9 million from FEMA Shelter and Services Program – Competitiveness. Musk’s February 10th statement likely only referenced SSP-A payments. Lander’s numbers are lined up with a small variation of what is published on the FEMA website. However, while SSP funds may cover immigrant housing, according to the FEMA website, the fund’s scope is wider than that, covering “services related to the arrival of non-citizen immigrants” of awarded communities I’m doing it.

Liz Garcia, a spokesman for the mayor’s office, said $19 million of the $58.6 million SSP-A awards were spent on the hotel’s expenses. Garcia told local media that the funds were a refund for the direct hotel costs incurred by the city. The remaining $58.6 million was spent on other shelters, food, security and other expenses, Garcia confirmed with Snop. Garcia also said in a reported statement that the city has not paid a “luxury fee” to the hotel, as Musk argued.

According to a report by the New York Secretary released in July 2024, 49,460 asylum seekers stayed in hotels paid by the city at the end of May 2024. The average daily rates for asylum seeker hotels in January 2024 were: $156. These hotel fees were negotiated through a Homeless Services Bureau contract with the New York City Hotel Association. The report further allegedly “with a few exceptions, the city is paying market fees for hotel rooms that have been negotiated with the hotel group.”

Musk further argued in X that FEMA payments to New York “breached the law,” and was “disobedience to Trump’s executive order.” It was unclear exactly what laws or executive orders the mask mentioned. In fact, it was unknown that the money was originally made available to organizations like the New York City Management Budget by the US Congress.

The X-Post also argued that the money sent to New York City is “intent to help America, and instead spends on high-end hotels for illegals.” However, FEMA’s Disaster Relief Fund, which states can seek assistance during a national disaster, is a separate fund from SSP. FEMA cannot be done Redistribute funds to other programs (for example, funds that are transferred from the DRF to the SSP) without Congressional approval.

According to the agency’s website, FEMA allocated the following SSP funds to the New York City Management Budget office in 2024:

SSP-A Round 1: $38,864,884 SSP-A Round 2: $20,437,241.07 SSP-C: $20,437,241.07

The agency distributed a total of $6400.9 million in 2024 to non-federal entities nationwide through the SSP-A and SSP-C awards. New York City money was allocated in 2024, but was not paid to the city until February 2025, according to the Secretary’s office.

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