The $80 million in funding was clawed back after the Trump administration claimed the money was being used to house migrants in “luxury hotels.”

Elon Musk posted Monday on X that the so-called Department of Government Efficiency he heads had uncovered millions of dollars being spent illegally by FEMA to house migrants in New York City. He said the money was meant for American disaster relief and was wrongly spent for “high end” hotels.

Federal funds to reimburse the city for costs of the migrant crisis have been withdrawn from city bank accounts, City Comptroller Brad Lander said.