DOGE says Texas nonprofit with former Biden transition member reaped millions operating empty facility

The Department of Health and Human Services (HHS) has ended a lucrative contract with a nonprofit organization that was being paid millions of dollars each month to operate an overflow facility in Texas, despite the facility being completely empty. According to the Department of Government Efficiency (DOGE), this contract was terminated after it was revealed that the facility, which was intended to house unaccompanied migrant children, had been sitting vacant while taxpayers footed the bill.

The story began in early 2021 when a former employee of U.S. Customs and Immigration Enforcement, who also served on President Biden’s transition team, joined the nonprofit organization known as Family Endeavors. This individual reportedly played a key role in helping the organization secure a sole-source contract with HHS to provide overflow housing for migrant children. As a result of this contract, Family Endeavors experienced a dramatic financial transformation. By 2023, the organization’s cash and investments had grown from $8.3 million in 2020 to a staggering $520.4 million, raising questions about how these funds were being utilized.

Since March 2024, HHS had been paying Family Endeavors $18 million every month to maintain the facility in Pecos, Texas. However, DOGE revealed that the facility had been empty during this entire period, with no migrant children being housed there. This revelation sparked outrage, as it suggested that taxpayer money was being squandered on a facility that was not being used for its intended purpose. DOGE highlighted that with the current occupancy rate of licensed facilities nationwide being below 20%, HHS was able to terminate the contract, saving taxpayers over $215 million annually.

Following the termination of the contract, DOGE took to social media to criticize the wasteful spending and to announce the action taken by HHS. The post also tagged Ed Martin, the U.S. Attorney for Washington, D.C., who responded by stating, “I see it. We will dig into this,” indicating that a formal investigation may be underway. Fox News Digital reached out to Family Endeavors for comment, but the organization has not yet provided a statement regarding the matter.

DOGE, led by its prominent leader Elon Musk, has been vocal about its mission to eliminate wasteful government spending. Musk has taken a bold approach to addressing fiscal inefficiencies, often using social media to highlight cases of misuse of taxpayer funds. During a recent Cabinet meeting under President Donald Trump, Musk emphasized the urgency of cutting government spending, stating, “If we don’t do this, America is going to be bankrupt.” He also expressed confidence that DOGE’s efforts would lead to $100 trillion in spending cuts, a goal that has drawn both support and skepticism from various quarters.

The termination of the contract with Family Endeavors and the subsequent investigation highlight the ongoing challenges of government oversight and accountability. While DOGE’s efforts to expose and correct financial mismanagement are commendable, they also raise important questions about the broader systemic issues that allow such wasteful spending to occur in the first place. As the nation grapples with fiscal challenges, the spotlight will continue to shine on agencies like HHS and organizations like Family Endeavors, ensuring that taxpayer dollars are used responsibly and effectively.