Elon Musk’s Next Move After USAID Shutdown: Targeting FEMA Over Alleged $59 Million Hotel Spend For Migrants

Elon Musk has hinted that the Federal Emergency Management Agency (FEMA) could be the next target of his Department of Government Efficiency (DOGE), following last week’s abrupt closure of the United States Agency for International Development (USAID). The billionaire, who has been wielding significant influence in President Donald Trump’s administration, made the statement Monday morning.

$59 Million Spent on Housing Migrants in Luxury Hotels

Musk revealed that his DOGE team discovered that FEMA had spent $59 million last week to house illegal immigrants in luxury hotels in New York City. The revelation has sparked fresh controversy over government spending priorities, particularly regarding migrant aid.

In response, Musk has called for FEMA, which operates under the Department of Homeland Security (DHS), to issue a clawback demand to recover the funds.

Musk took to his X platform on Monday to express his frustration over the expenditure.

“Sending this money violated the law and is in gross insubordination to the President’s executive order,” Musk stated.

He further criticized the agency’s allocation of funds, saying, “That money is meant for American disaster relief and instead is being spent on high-end hotels for illegals!”

DHS Secretary Kristi Noem Supports FEMA Overhaul

FEMA falls under the jurisdiction of DHS Secretary Kristi Noem, a former South Dakota governor. When asked about FEMA’s future, Noem suggested it should be dismantled in its current form.

“If the president came to you and said, ‘You’re my DHS secretary, do you think I should get rid of FEMA?’ what would you say?” CNN’s Dana Bash asked Noem during an interview on State of the Union on Sunday.

“I would say, yes, get rid of FEMA the way it exists today,” Noem responded.

However, she later clarified that disaster relief funding should still be available but managed differently.

“We still need the resources and the funds and the finances to go to people that have these types of disasters like Hurricane Helene and the fires in California,” she explained. “But you need to let the local officials make the decisions on how that is deployed, so it can be deployed much quicker.”

Potential FEMA Shutdown Raises Concerns

The possibility of shutting down FEMA has raised concerns among those who worry about the impact on emergency response efforts. Critics argue that eliminating the agency could leave Americans vulnerable during natural disasters.

The controversy follows last week’s abrupt shutdown of USAID, which left thousands of employees locked out of their systems and scrambling for answers. Overseas workers were informed that travel back to the U.S. would be arranged within 30 days.

With FEMA potentially in Musk’s crosshairs, uncertainty looms over the future of federal disaster relief and the broader implications of DOGE’s aggressive cost-cutting measures.

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