As a direct impact of the contract, Family Endeavors saw its cash and investments soar from $8.3 million in 2020 to $520 million in 2023.
The Department of Health and Human Services has terminated a contract with a nonprofit that was paid millions each month to operate a Texas overflow facility that sat empty, according to the Department of Government Efficiency (DOGE).
In a social media post, DOGE said a former U.S. Customs and Immigration Enforcement employee and Biden transition team member joined Family Endeavors in early 2021, where they helped the organization 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, the post states.
Since March 2024, HHS has paid $18 million per month to keep a facility in Pecos, Texas, used for housing for unaccompanied migrant children that was previously at the center of reports of poor conditions.
The payments continued, despite the facility being empty, DOGE said.
“With national licensed facility occupancy now below 20%, HHS was able to terminate this contract, saving taxpayers over $215M annually,” the post on X states.
DOGE and its leader, Elon Musk, have taken a slash and burn approach to wasteful government spending. On Wednesday, Musk predicted DOGE will reach its $100 trillion spending cut goal.
“If we don’t do this, America is going to be bankrupt,” he said during President Donald Trump’s first Cabinet meeting.
