DOGE HHS Migrant Housing Contract Terminated, Saving Taxpayers $215 Million Annually

Trump Administration’s DOGE Takes Action Against Government Waste

Since Donald Trump took office, the Department of Government Efficiency (DOGE) has been on a mission to fight waste, fraud, and abuse in the government. DOGE also has an X account highlighting the actions it is taking to help taxpayers save money, allegedly.

In late February, DOGE’s X account sent out a message reporting it had ended a contract with a San Antonio non-profit called Family Endeavors, claiming that by having HHS terminate the contract, they’d saved taxpayers over $215 million per year.

Nonprofit Paid Millions to Operate Empty Facility

According to the DOGE post, the Department of Health and Human Services (HHS) was paying around $18 million per month to Endeavors to run a facility in Pecos, Texas, that was intended for use housing of unaccompanied migrant children. However, at the time, the facility was sitting empty.

DOGE officials felt that paying millions per month for an unused shelter wasn’t the best use of taxpayer money, especially as it noted the occupancy of national licensed facilities is now below 20%, so it ended the contract.

Family Endeavors Responds to Allegations

Endeavors, however, claims it was fulfilling its mandate properly and that its contract was not an example of fraudulent spending. The non-profit organization issued a detailed statement, saying that “any claims of corruption or mismanagement are baseless.”

Endeavors, however, believes it was acting within the scope of its obligations and that the service it was providing was a valuable one that was in line with its obligations. In an interview with News 4 San Antonio, a source from Endeavors shared that the shelter had been occupied from March 2021 to March 2023, and again from September 2023 to February 2024, over which time it served 40,000 unaccompanied minors.

Operational Costs and Maintenance Requirements

When the government stopped using the shelter in March 2024, Endeavors said funding was still needed to pay all the expenses associated with keeping the shelter ready to be used again at any time, like its lease, medical facilities, vaccine refrigeration, and the hundreds of cameras required for security.

Is There a Conflict of Interest?

The DOGE post on X didn’t just focus on the emptiness of the facility. It also aimed to highlight the connections Endeavors had with the Biden administration to cast doubt on whether the contract was on the up-and-up in the first place.

The X post stated that, “A former ICE employee and Biden transition team member joined Family Endeavors in early 2021 and helped secure a sole-source HHS contract for overflow housing from licensed care facilities. As a result, Family Endeavors’ cash and portfolio of investments grew from $8.3M in 2020 to $520.4M in 2023.”

Endeavors’ Defense and Track Record

While this growth might seem concerning, Endeavors’ statement indicated the non-profit had been serving migrant families under government contracts since 2012. The organization was just one of 15 organizations contracting with the government in 2021 to help house migrants during a period of increased border crossings.

“Our selection was based on our proven experience, capacity, and more than a decade of performance,” the non-profit stated in their official response.

Broader Context and Considerations

Evidence of connections with former government officials alone isn’t necessarily proof of corruption or wrongdoing. Readers can draw their conclusions from the competing statements and available facts.

It’s worth noting that various companies have received substantial federal contracts over the years. The practice of hiring former government employees is also common across many industries and organizations that work with federal agencies.

Current Status and Future Implications

Regardless, the contract has now come to an end, so Endeavors’ work with the government on this issue is halted, at least for now, along with payments to the nonprofit.

This contract termination represents one of many actions taken by the department as part of broader efforts to reduce government spending and eliminate what officials consider wasteful expenditures. The case highlights ongoing debates about the balance between fiscal responsibility and humanitarian obligations in government contracting.

Also Read: Unlocking Marketing Success: How AI Agents and Generative Tools are Transforming Campaigns