Vivek Ramaswamy, a key figure in US President-elect Donald Trump’s incoming administration, has criticised the New York City government’s decision to rent the Pakistan-owned Roosevelt Hotel for $220 million, which he described as a deal to house “illegal migrants.”
The agreement, which was struck last year, allows New York City to rent the iconic Roosevelt Hotel for three years. The hotel, owned by Pakistan International Airlines (PIA), was leased for $210 per room per night for its 1,025 rooms.
The New York City administration has repurposed the historic property as an arrival centre for migrants, offering services such as vaccines, food, and other resources.
Ramaswamy, a former Republican presidential candidate and co-leader of the newly formed Department of Government Efficiency, expressed outrage on social media.
“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,” he wrote on X, responding to a post by American author John Lefevre. “This is nuts.”
The Roosevelt Hotel, which has been closed since October 2020 due to the pandemic and the financial difficulties facing Pakistan’s aviation sector, has accumulated liabilities of around $25 million in taxes and other expenses.
The deal comes at a time when Pakistan, struggling with its economic crisis, has sought to generate revenue through the hotel rental. The Roosevelt, once a symbol of New York’s grandeur, has been leased out to mitigate its mounting costs.
Ramaswamy’s comments add to a growing controversy over the deal, with critics questioning the use of taxpayer funds to support the housing of migrants in a foreign-owned hotel. The issue has raised concerns over the intersection of local government spending, international agreements, and the handling of migration in the US.
Ramaswamy, who will co-lead the Department of Government Efficiency alongside billionaire Elon Musk, has suggested that the new department could streamline government operations, but the Roosevelt Hotel deal may complicate his stance on foreign investments in US welfare programmes.
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