The Department of Homeland Security (DHS) announced on February 11, 2025, the termination of four Federal Emergency Management Agency (FEMA) employees, including the agency’s chief financial officer, Mary Comans, two program analysts, and a grant specialist, for allegedly circumventing leadership to send $59 million to New York City for housing migrants in hotels. The firings followed a post on X by Elon Musk, head of the Department of Government Efficiency, claiming the funds were illegally allocated to “luxury hotels” for “illegal migrants,” in defiance of President Trump’s executive orders. DHS stated the employees made “egregious payments” and accused them of acting as “deep state activists” undermining public safety under Trump and DHS Secretary Kristi Noem’s leadership.

New York City officials clarified that the $59.3 million, part of $80.5 million received, was legally appropriated by Congress in 2023 for the Shelter and Services Program (SSP), managed by FEMA with U.S. Customs and Border Protection funds, not disaster relief grants. Of this, $19 million covered hotel costs, with the remainder for services like food and security for over 223,000 migrants since 2022. The city emphasized that hotel rates averaged $156 per night, negotiated with the Hotel Association of New York City, far below luxury rates.

Musk’s claim, echoed by Trump’s call to abolish FEMA, sparked controversy, with critics arguing the funds were mischaracterized. New York City Comptroller Brad Lander called the subsequent clawback of $80 million “highway robbery,” alleging illegal revocation of congressionally approved funds, and vowed legal action. FEMA’s acting administrator, Cameron Hamilton, suspended SSP payments, citing concerns about “facilitating illegal activities” at hotels like the Roosevelt, linked in a New York Post report to the Venezuelan gang Tren de Aragua. No evidence substantiated claims of luxury hotel use or disaster fund misuse.

The firings align with Trump’s broader immigration crackdown, including the Laken Riley Act mandating detention of undocumented immigrants accused of serious crimes. Posts on X reflected polarized sentiment, with some praising the terminations as accountability for insubordination, while others questioned their legality and called for criminal prosecution of the officials. The Trump administration’s actions, including a brief federal grant freeze, have raised concerns about overreach, with lawsuits pending to challenge the funding clawback. As tensions escalate, the dispute highlights ongoing debates over immigration policy, federal authority, and FEMA’s role in disaster and migrant support programs.