The U.S. Department of Homeland Security (DHS) fired Federal Emergency Management Agency (FEMA) CFO Mary Comans and three employees on Feb. 11. They are accused of illegally approving $59 million in housing payments to illegal immigrants in luxury New York City hotels.

“FEMA fired four employees for making illegal payments to migrant hotels, bypassing management,” DHS said.

President Donald Trump has called FEMA a “disaster” and proposed dismantling the agency. He said money intended to help Americans was spent on migrants.

DOGE CEO Elon Musk said the funds should be returned. New York City officials confirmed they received $81 million to pay for housing and services for migrants, but said it was congressionally approved compensation.

Acting FEMA Administrator Cameron Hamilton froze all such payments effective February 9.

DHS Secretary Kristi Noem has backed a full overhaul of FEMA. The scandal has erupted amid accusations of political bias at the agency, including failure to help victims in pro-Trump areas.