DOGE HHS Migrant Housing Contract: The $18 Million Monthly Scandal Explained

The DOGE HHS migrant housing contract became a lightning rod for controversy when the Department of Government Efficiency terminated an $18 million monthly payment to Family Endeavors for an empty migrant facility in Texas. This case highlights critical issues in federal spending oversight and emergency contracting procedures that cost taxpayers hundreds of millions.

The DOGE HHS migrant housing contract was an $18 million monthly agreement between the Department of Health and Human Services and San Antonio-based nonprofit Family Endeavors to operate the Pecos Children’s Center in Texas. DOGE terminated the contract in March 2025 after discovering the facility had been empty since March 2024, saving taxpayers an estimated $215 million annually.

What Is the DOGE HHS Migrant Housing Contract

The contract originated in early 2021 during a period of unprecedented migrant arrivals at the southern border. HHS awarded Family Endeavors a sole-source (no-bid) contract to operate the Pecos Children’s Center, designed to house up to 3,000 unaccompanied migrant children.

The facility served as an “influx shelter” – a temporary housing solution used when regular licensed facilities reached capacity. The contract was worth as much as $530 million, making it by far the largest ever awarded to Family Endeavors.

Contract Timeline and Key Details

Family Endeavors secured this massive contract shortly after hiring Andrew Lorenzen-Strait, a former ICE official who served on Biden’s DHS transition team, in early 2021. This timing raised questions about the no-bid award process.

The financial growth was staggering. Family Endeavors’ cash and portfolio of investments grew from $8.3 million in 2020 to $520.4 million in 2023.

Why DOGE Terminated the Contract

According to DOGE, HHS was paying around $18 million per month to Endeavors to run a facility in Pecos, Texas, that was intended for housing unaccompanied migrant children. However, the facility was sitting empty.

The Empty Facility Problem

By late 2024, border crossings had declined significantly due to stricter enforcement and policy changes. National occupancy rates for licensed migrant facilities dropped below 20%. Yet, the Pecos center remained funded despite housing zero children from March 2024 onward.

The math was shocking. $18 million a month works out to over $415 per minute. For an empty building.

DOGE’s Investigation Findings

DOGE’s audit revealed the continuation of an $18 million monthly payment for an empty facility sparked outrage, especially when compared to underfunded domestic programs like veteran housing or mental health services.

The Controversy Around Contract Awards

Family Endeavors won the contract just months after it hired Andrew Lorenzen-Strait as its senior director for migrant services and federal affairs. He also ran a consulting firm advising companies on federal procurement practices with specific expertise on agencies that include the Administration for Children and Families.

Questions About the Bidding Process

The sole-source nature of the contract drew criticism from watchdog groups. While emergency contracts are allowed under federal rules, they are meant to be temporary. Critics argue this arrangement became a long-term cash cow with no accountability.

As the current contract stands, the cost to taxpayers for housing 1,200 migrant families for six months is about $71,000 per person. For a family of four, that amounts to a shocking $284,000—enough to buy a small house.

Family Endeavors’ Defense

Family Endeavors was responsible for maintaining operational readiness at the Pecos shelter, ensuring the ability to scale from Cold Status (operationally ready but not actively serving children) to full use of 3,000 beds as needed. Decisions regarding facility use and migrant sheltering locations were made by the federal government, not Endeavors.

The organization emphasized their track record. Family Endeavors had been serving migrant families under contracts with the government since 2012 and was just one of 15 organizations contracting with the government in 2021 to help house migrants.

Financial Impact and Savings

Contract Details	Amount
Monthly Payment	$18 million
Annual Cost	$216 million
Projected Savings from Termination	$215 million annually
Family Endeavors Revenue Growth (2020-2023)	From $8.3M to $520.4M
Contract Ceiling Value	Up to $530 million

DOGE claimed the termination would save $215 million annually. This figure is based on projected future savings, assuming continued payments at the same rate.

What DOGE Discovered

The Department of Government Efficiency, established in early 2025 under President Donald Trump’s second term, was created to identify and eliminate wasteful federal spending. Co-led by billionaire entrepreneur Elon Musk and biotech investor Vivek Ramaswamy, DOGE operates as a high-impact reform task force.

Key DOGE Findings

By February 5, 2025, DOGE gained access to financial systems at HHS, including the Healthcare Integrated General Ledger Accounting System (HIGLAS). Their investigation revealed:

The Pecos facility had been empty since March 2024
Monthly payments of $18 million continued regardless of occupancy
No mechanism existed to scale payments based on actual usage
The contract lacked performance metrics or accountability measures

Current Investigation Status

Homeland Security reposted DOGE’s post on X, tagging U.S. Attorney Ed Martin with the words “please investigate”. To which Martin responded, “duly noted. We are on it.”

After the DOGE announcement, the U.S. Attorney’s Office in Washington, D.C. opened an investigation into the contract. They are looking into how the deal was made, whether money was misused, and if any rules were broken.

No Proven Wrongdoing Yet

There is no verified evidence that Family Endeavors violated contract terms. No criminal investigations have been launched into Family Endeavors. The organization maintains they followed all contractual obligations and federal requirements.

Impact on Federal Contracting

This case exposed systemic issues in emergency government contracting. The episode revealed systemic vulnerabilities in emergency contracting, according to policy analysts. Some media sources researched DOGE’s prior business practices, noting this was not the first time the corporation overpromised and under-delivered.

Lessons for Future Contracts

The termination highlights the need for:

Better oversight mechanisms in emergency contracts
Performance-based payment structures
Regular occupancy assessments
Clear termination clauses when services aren’t needed

What This Means for Immigration Policy

The termination of this contract is projected to save taxpayers over $215 million annually, but it also raises questions about preparedness for future migration surges.

Immigration advocates worry that eliminating standby capacity could leave the system unprepared if border crossings increase again. However, fiscal conservatives argue that maintaining empty facilities represents poor stewardship of taxpayer funds.

The case demonstrates the challenge of balancing humanitarian needs with fiscal responsibility in federal contracting, particularly during crisis periods when normal procurement processes are expedited.

FAQ

What was the DOGE HHS migrant housing contract?

It was an $18 million monthly agreement between HHS and Family Endeavors to operate the Pecos Children’s Center in Texas for unaccompanied migrant children.

Why was the contract terminated?

DOGE found the facility had been empty since March 2024 while still receiving $18 million monthly payments, calling it wasteful spending.

Is Family Endeavors under investigation?

Yes, the U.S. Attorney’s Office has opened a preliminary investigation, but no wrongdoing has been proven or charges filed.

How much money did the termination save?

DOGE estimates the termination will save taxpayers approximately $215 million annually in projected future payments.