### Fact Check: Elon Musk’s False Claim About FEMA Funds for Migrant Hotels
This week, New York City officials confirmed receiving two federal payments reimbursing expenses related to services for migrants, including $19 million for hotel accommodations. However, Elon Musk, head of the Department of Government Efficiency, falsely claimed—without evidence—that $59 million in disaster relief funds had been sent to “luxury hotels” for migrants.
#### **Musk’s False Claim**
Musk’s statement, posted on X (formerly Twitter), echoed previous **false claims** made by former President Donald Trump and others, alleging that Federal Emergency Management Agency (FEMA) funds meant for hurricane relief were used to house undocumented migrants. However, as previously reported, Congress had allocated funds specifically for the Department of Homeland Security’s **Shelter and Services Program**, which provides grants to nonfederal entities for migrant housing and services. FEMA’s **Disaster Relief Fund**, which supports U.S. residents affected by natural disasters, is funded separately.
Despite this, on **February 10**, Musk posted:
> “The @DOGE team just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City to house illegal migrants. That money is meant for American disaster relief and instead is being spent on high-end hotels for illegals!”
#### **The Facts: Where Did the Money Come From?**
Reports from the **Associated Press** and **The New York Times** confirm that the funds Musk referenced came from the **Shelter and Services Program**, not FEMA’s disaster relief budget. The program is funded through the **U.S. Customs and Border Protection (CBP) budget**, and FEMA and CBP—both agencies under the Department of Homeland Security (DHS)—**coordinate to administer the grants**.
A DHS official previously told reporters that the funding for migrant services is **“completely separate”** from disaster relief funds allocated by Congress.
Additionally, New York City spokesperson Liz Garcia clarified that only **a portion** of the $59 million was used for hotel costs.
#### **Breakdown of the Federal Payments**
Garcia explained that the city recently received **two federal payments totaling $81 million** for immigration-related services. One of these payments was **approximately $59 million**, with **$19 million specifically allocated for hotel stays**. Since **spring 2022**, New York City has accommodated **over 200,000 migrants**.
> “The payments of $81 million covered reimbursements for November 2023 to October 2024, including hotel, security, food, and other costs,” Garcia told the AP. “The city applied for the funds in April, Congress appropriated the money last year, and FEMA allocated it accordingly.”
She also refuted Musk’s claim that the city paid **“luxury” rates** for hotels.
#### **Hotel Costs: What the Data Shows**
A **July 2024 report** from the New York City Comptroller’s Office found that during **fiscal year 2024**, the city spent an average of **$156 per night** on hotel rooms for migrants. This rate, negotiated with the **Hotel Association of New York City**, was **$1.50 higher than the market economy rate but $27 lower than the upscale rate**. Most of the hotels were located outside Manhattan.
#### **Federal Government Retracts Funds**
Despite the funds being legally allocated, a DHS spokesperson confirmed that the department **rescinded the full $81 million payment** and fired four FEMA employees responsible for processing the payments.
New York City Comptroller **Brad Lander** condemned the move, calling it **illegal** and urging Mayor **Eric Adams** to take legal action.
> “This is money that the federal government previously disbursed for shelter and services and is now missing,” Lander said. “This highway robbery of our funds directly out of our bank account is a betrayal of everyone who calls New York City home.”
Mayor Adams confirmed that his office had already contacted the **White House** to **recover the funds**.
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### **Conclusion**
Elon Musk’s claim that **$59 million in disaster relief funds were sent to luxury hotels for migrants** is **false**. The money came from a **separate, congressionally approved program** designed to assist cities in managing the influx of migrants. Additionally, the city did not pay luxury rates for hotels.
Despite this, the federal government **rescinded the funds**, sparking legal and political backlash.
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Source: factcheck.org