DHS Fires FEMA Officials After 'Deep State Activists' Sent $59M To NYC Migrant Hotels—Trump Admin Claws It Back

The Department of Homeland Security has recovered $59 million in taxpayer funds that the Federal Emergency Management Agency had sent to New York City to cover hotel stays for migrants.

The funds were part of FEMA's Shelter and Services Program, which provides financial support to local governments for noncitizen assistance. However, DHS officials determined that the payment was unauthorized and swiftly moved to reclaim it.

Clawing Back Federal Funds Amid Political and Legal Scrutiny

According to Fox News, DHS fired four FEMA employees, including the agency's chief financial officer, two program analysts, and a grant specialist, for approving the payment without clearance from leadership.

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Homeland Security Secretary Kristi Noem confirmed the move on X, saying, “I have clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels.”

The controversy escalated when Elon Musk, head of the Trump administration's Department of Government Efficiency, posted on X that FEMA had made the payment in violation of federal law. “The @DOGE team just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City to house illegal migrants." 

Sending this money violated the law and is in gross insubordination to the President's executive order,” Musk wrote. Following this, per Federal News Network, FEMA's acting administrator, Cameron Hamilton, suspended the payments, leading to an internal review and the eventual terminations.

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The funds were originally part of FEMA's SSP initiative, which Congress established in 2023 to help cities manage rising numbers of migrant arrivals. 

New York City had received over $80.5 million under this program, with about $19 million allocated specifically for hotel stays at an average cost of $156 per night—well within the General Services Administration's standard rate.

City officials pushed back against the decision. Mayor Eric Adams and Comptroller Brad Lander have strongly criticized the federal government's move, with Lander calling the fund recall “highway robbery.” The New York Times reported that Adams is exploring legal action, arguing that New York is legally required to provide shelter for those in need and that FEMA's withdrawal of funds puts the city in a difficult position.

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The Trump administration has framed the clawback as part of its broader push to reduce federal spending on migrant assistance. 

In line with this effort, DHS has focused on mass deportations, with Noem and border czar Tom Homan leading an initiative that prioritizes removing individuals with criminal records. As reported by The New York Post, the administration is also reviewing FEMA's overall operations to eliminate political bias and streamline disaster relief funding.

The debate over these funds is just one part of a larger national conversation about the role of the federal government in immigration policy. According to Time magazine, Trump has even suggested dismantling FEMA altogether and shifting disaster relief funding to state governments.

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