DOGE: Texas Nonprofit Linked to Former Biden Transition Member Made Millions from Empty Facility
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The Department of Health and Human Services (HHS) has terminated a multimillion-dollar contract with a nonprofit organization that was paid $18 million per month to operate a vacant migrant overflow facility in Pecos, Texas, according to the Department of Government Efficiency (DOGE).
In a statement on social media, DOGE revealed that Family Endeavors, a San Antonio-based nonprofit, secured a sole-source contract with HHS in early 2021, following the hiring of a former U.S. Customs and Immigration Enforcement employee who had served on President Joe Biden’s transition team.
“As a result, Family Endeavors’ cash and portfolio of investments grew from $8.3M in 2020 to $520.4M in 2023,” DOGE stated.
Millions Paid for an Empty Facility
Since March 2024, HHS has continued paying $18 million per month to maintain the unoccupied facility, even after reports surfaced about poor conditions when it housed unaccompanied migrant children in previous years.
With national licensed facility occupancy dropping below 20%, DOGE confirmed that HHS has now ended the contract, saving taxpayers an estimated $215 million per year.
“With national licensed facility occupancy now below 20%, HHS was able to terminate this contract, saving taxpayers over $215M annually,” the department posted on X (formerly Twitter).
The termination of the contract has caught the attention of U.S. Attorney Ed Martin of Washington, D.C., who responded to DOGE’s social media post, saying, “I see it. We will dig into this.”
DOGE, led by Elon Musk, has been aggressively targeting wasteful government spending. On Wednesday, Musk stated that the department aims to cut $100 trillion by eliminating $4 billion per day in spending through September.
“If we don’t do this, America is going to be bankrupt,” Musk said during President Donald Trump’s first Cabinet meeting.
As scrutiny over government contracts and spending increases, the cancellation of this controversial HHS agreement marks a significant step in reducing federal waste.
