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

New York City officials said the city had received two payments from the federal government as reimbursement for expenses the city incurred while providing services to migrants who arrived in New York,

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.

Officials at the Department of Homeland Security failed to offer details on how the four employees had violated any policies.

The ruling comes after Elon Musk claimed, without evidence, that $59 million in FEMA funds were used to cover high-end hotels for migrants.

Officials say the Federal Emergency Management Agency has yanked back more than $80 million from New York City.

The funding was clawed back as New York City denies allegations by tech billionaire Elon Musk the money was going toward “luxury” hotel lodging for migrants.

Federal funds to reimburse the city for costs of the migrant crisis have been withdrawn from city bank accounts, City Comptroller Brad Lander said.