Some republican coworkers have told me that “illegal immigrants” are staying at n hotels and living purely off government money and taking advantage of our tax dollars.

Checked on February 4, 2026
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Executive summary

The claim that “illegal immigrants” are universally staying at hotels and living purely off government money is an oversimplification that mixes distinct programs, local emergency sheltering, and false social-media details; some asylum seekers and migrants have been placed in hotel rooms under temporary contracts or city shelter systems, but eligibility for broad federal cash benefits for undocumented immigrants is limited and many popular claims have been debunked [1] [2] [3].

1. What’s actually happening with hotel housing

Cities and federal agencies have used hotel rooms as emergency shelter during recent migrant surges: New York City sheltered roughly 65,000 asylum seekers across hotels, tent dormitories and other shelters, with hotel placements concentrated in lower-rated properties rather than “luxury” resorts [4] [2]; separately, ICE signed a roughly $86.9 million, six‑month contract with the nonprofit Endeavors to provide about 1,239 beds near the border for families in immigration proceedings, a temporary operational measure not a blanket entitlement [1] [5] [6].

2. Who pays, and where the money came from

Funding is a patchwork: some city and state budgets have covered shelter costs (New York’s shelter spending figures and forecasts are public), federal agencies have entered contracts for specific temporary services, and claims that FEMA redirected disaster relief unlawfully to pay for “luxury” hotel rooms have been debunked—the funding lines and per‑room rates reported (about $156 per night on average in New York in 2024) do not support the “federal cash-for-resorts” narrative [7] [2] [8].

3. Eligibility for regular federal benefits is limited

Undocumented immigrants are generally ineligible for the bulk of federal cash assistance and most ongoing benefit programs; fact checks and nonprofit legal summaries note that people present without lawful status do not receive broad federal cash assistance, with narrow exceptions for certain groups (for example, some Cubans or Haitians) and specific emergency or local services vary by jurisdiction [3] [9] [10].

4. False details and viral exaggerations matter

Numerous viral posts have conflated contract lengths with individual stays, invented travel vouchers or $5,000 gift payments, and overstated hotel standards; journalists and fact‑checkers have repeatedly found such specific allegations false or misleading—for example, there was no federal deal giving Greyhound vouchers as claimed, and widely shared videos of “migrants storming City Hall for luxury rooms” were mischaracterized [1] [11] [3].

5. The politics and incentives behind the messages

Republican lawmakers and candidates have spotlighted hotel placements and municipal costs as part of broader calls to cut or redirect funding—proposals like terminating shelter programs or shifting funds to enforcement appear alongside claims that migrants “live purely off government money,” an assertion that ignores legal constraints on benefit eligibility and the fragmented fiscal reality [8] [12] [13]. Media and political actors benefit when complex administrative arrangements are simplified into outrages, so scrutiny of specific contracts, dates, and funding sources is crucial [1] [7].

6. Bottom line for the claim

It is true that some migrants and asylum seekers have been housed in hotels under temporary contracts or city shelter programs, and that taxpayers—at local, state, or federal levels—have borne some costs; it is false or unsupported to say undocumented migrants are uniformly living in luxury hotels or universally “living purely off government money” in the way viral posts often imply, because eligibility rules, funding sources, and program purposes are narrower and more complex than those claims suggest [2] [4] [3] [1].

Want to dive deeper?
How do municipal shelter contracts for migrants work and where can the public see the contracts?
Which federal benefits are undocumented immigrants legally eligible for, and which are explicitly barred?
What investigative reporting has tracked actual per‑room costs and hotel tiers used for migrant sheltering in major U.S. cities?