The Department of Health and Human Services (HHS) has terminated a controversial contract with the non-profit organization, Family Endeavors, for the operation of an overflow facility in Pecos, Texas, used for housing unaccompanied migrant children, Fox News reports.
The Department of Government Efficiency (DOGE) announced the contract termination, highlighting concerns over wasteful spending.
According to DOGE, the facility remained largely empty despite HHS paying Family Endeavors $18 million per month since March 2024 to maintain it. This comes after previous reports surfaced regarding substandard conditions at the Pecos facility.
DOGE further alleges that a former US Customs and Immigration Enforcement employee and Biden transition team member joined Family Endeavors in early 2021, subsequently aiding the organization in securing a sole-source HHS contract for overflow housing from licensed care facilities. DOGE claims that this contract resulted in a significant increase in Family Endeavors’ financial assets, growing from $8.3 million in 2020 to $520.4 million in 2023.
DOGE stated on X that HHS’s decision to terminate the contract was due to national licensed facility occupancy rates dropping below 20%. The cancellation is projected to save taxpayers over $215 million annually.
DOGE, led by Elon Musk, has been vocal about targeting wasteful government spending. Musk has previously stated that DOGE aims to cut $100 trillion in spending, asserting that such cuts are vital to prevent national bankruptcy.
