WASHINGTON (AP) — On Tuesday, four federal employees were dismissed in connection with reimbursements made to New York City for lodging costs related to migrants, according to officials from the Department of Homeland Security.

These employees allegedly bypassed organizational protocols to facilitate these transactions, which are part of a longstanding program aimed at assisting with expenses related to the increase in migration. However, no specific information has been provided regarding the exact nature of the policy breaches.

Elon Musk, an assistant to former President Donald Trump, highlighted the issue on X on Monday, claiming his team uncovered payments that were used to accommodate migrants in “luxury hotels” instead of funds earmarked for disaster relief. Musk criticized the Federal Emergency Management Agency (FEMA), labeling these transactions as a “gross insubordination.”

Following these allegations, FEMA’s acting administrator, Cameron Hamilton, announced that the payments had been halted, and that the employees responsible would face consequences.

According to a statement from Homeland Security, the terminated individuals included FEMA’s chief financial officer, two program analysts, and a grant specialist. The statement noted, “The employees made egregious payments for luxury hotel accommodations for migrants,” emphasizing that the department would not tolerate actions that undermine the safety and preferences of the American populace.

The statement did not elaborate further, and officials did not respond to inquiries requesting additional clarification. However, court documents submitted on Tuesday revealed that Hamilton indicated the administration had suspended funding for the Shelter and Services Program due to concerns that the money was being used to support illegal activities at a Manhattan hotel housing migrants.

Hamilton’s remarks were part of a legal response aiming to challenge the Trump administration’s suspension of federal grants and loans. The freeze, which took effect shortly after the new administration began, caused widespread confusion for states, municipalities, and organizations that depend on federal support, only to be lifted two days later.

“Currently, the Department has paused funding for the Shelter and Services Program due to significant worries that funds are being directed to entities involved in or facilitating illegal activities,” Hamilton stated.

He referenced a report from the New York Post, which claimed that the Venezuelan gang Tren De Aragua was utilizing the Roosevelt Hotel—one of the hotels designated for housing migrants in New York—as a “recruitment center and operational base for a range of criminal endeavors.” Hamilton stated that if FEMA payments continued, they would likely contribute to funding illegal activities.

New York began leasing the Roosevelt Hotel in 2023 as an intake site for homeless migrants seeking services, following its closure in the fall of 2020 due to the COVID-19 pandemic. Under state law, New York City is required to provide shelter for those in need, and during that time, the traditional homeless shelter system was overwhelmed with newcomers. The hotel functions as both a venue for migrants to apply for services and a temporary housing solution for hundreds of families, whose stay is limited to 60 days.

Hamilton mentioned that the federal government retains the authority to pause or withdraw payments if recipients do not adhere to program regulations, and FEMA is actively working with New York to acquire further information and “ensure that federal funds are not used for illegal activities.”

The Shelter and Services Program—the funding for which comes from Congress and is administered by FEMA—has faced intense scrutiny from Republican critics, who have erroneously claimed it diverts funds from hurricane or flood victims.

It’s important to note that these funds are separate from FEMA’s disaster relief budget, which serves as its primary financial source for assisting individuals and governments impacted by disasters. The recent terminations and court documents emerge amid increasing pressure from Trump’s Republican administration, which is advocating for the disbanding of FEMA and suggesting that funding be directly allocated to states for disaster management.

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AP reporter Cedar Attanasio contributed from New York.