Controversy Over Use of Taxpayer Funds
The arrangement has drawn sharp criticism from US Republican Vivek Ramaswamy, who expressed his disapproval in a social media post. “A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country. This is nuts,” he said.
Ramaswamy’s reaction followed a report by author John LeFevre, who revealed details of the agreement on social media platform X. LeFevre stated, “The city of New York pays $220 million to rent the entire Roosevelt Hotel in Manhattan to house illegal migrants. The hotel is owned by the government of Pakistan, and the deal was part of a $1.1 billion IMF bailout package to help Pakistan avoid defaulting on their international debt.”
“Prior to this sweetheart deal, the hotel had been closed since 2020, having long-struggled with occupancy and in dire need of renovation,” he wrote.LeFevre added that the hotel had been closed since 2020 due to financial struggles and a need for renovation before being reopened for this purpose.
Lease Details and Pakistan’s Financial Context
The Roosevelt Hotel lease is part of a broader financial strategy for Pakistan, which has been navigating economic challenges. “The lease agreement is expected to generate revenues to the tune of around USD 220 million for the Pakistan government,” Minister of Railways and Aviation Khawaja Saad Rafique announced during a press conference in 2023. “A contract was signed for 1,250 rooms. The hotel will be returned to the government of Pakistan once the three-year term lease expires,” he was quoted as saying by Geo TV.
The minister elaborated that the contract covered 1,250 rooms and included a clause returning the hotel to Pakistan’s government after the three-year term. This agreement comes as part of a $1.1 billion International Monetary Fund (IMF) bailout package aimed at preventing Pakistan from defaulting on international debt.
How is the Roosevelt Hotel involved?
Named after former US President Theodore Roosevelt, the 19-storey hotel has long been a historical fixture in Manhattan. The hotel closed during the pandemic in 2020, as it struggled with declining occupancy and operational challenges. It remained shuttered until earlier this year, when the City of New York signed the lease to house migrants.
The hotel’s reopening under the migrant accommodation programme has highlighted tensions over public spending priorities in the United States.
Government Efficiency Initiative
As the debate intensifies, President-elect Donald Trump has tasked Ramaswamy and Tesla CEO Elon Musk with leading a newly established Department of Government Efficiency (DOGE). This initiative aims to identify and eliminate wasteful government expenditures.
The Roosevelt Hotel lease has become emblematic of broader concerns over resource allocation, sparking discussions about balancing domestic needs with international arrangements.
