In a surprising move that has sparked criticism, New York City has agreed to pay a whopping USD 220 million to rent a hotel owned by the government of Pakistan. This decision has drawn the ire of several individuals, including Indian-origin Republican leader Vivek Ramaswamy, who labelled the deal as “nuts.”
Ramaswamy’s reaction was based on the fact that US taxpayers are effectively funding the housing of illegal migrants while also indirectly supporting a foreign government.
Ramaswamy took to social media to express his concerns. In a post on X (formerly Twitter), he wrote, “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. This is nuts.”
His words reflect the growing discontent over the use of taxpayer money in such international dealings, especially when it comes to issues related to immigration.
The deal in question revolves around the Roosevelt Hotel, located in Manhattan, which was leased out by the Pakistani government to the city of New York.
According to reports, the entire hotel, which had been struggling with low occupancy rates and in dire need of renovation, was rented out for a period of three years.
The rental agreement was part of a larger USD 1.1 billion bailout package from the International Monetary Fund (IMF) to Pakistan, which was aimed at preventing the country from defaulting on its international debt obligations.
The Roosevelt Hotel, a property owned by Pakistan International Airlines (PIA), had been closed since 2020 due to financial difficulties. However, in 2023, a deal was struck between the Pakistani government and the New York City administration, which resulted in the hotel being used to house illegal migrants.
This agreement has now become a point of contention, especially for critics who believe that it is an inappropriate use of taxpayer money.
John LeFevre, an author who highlighted the deal, also voiced his disapproval on social media. He shared a post on X, stating, “The city of New York pays $220 million to rent the entire Roosevelt Hotel in Manhattan to house illegal migrants. The hotel is owned by the government of Pakistan, and the deal was part of a $1.1 billion IMF bailout package to help Pakistan avoid defaulting on their international debt. Prior to this sweetheart deal, the hotel had been closed since 2020, having long struggled with occupancy and in dire need of renovation.” This revelation further fuelled the debate over the propriety of the deal.
The agreement between Pakistan and New York City comes at a time when the US is facing an ongoing immigration crisis, with many cities struggling to manage the influx of migrants.
The decision to house these migrants in a hotel owned by a foreign government has raised questions about the priorities of city officials and the use of public funds.
Some critics argue that the move highlights a failure to address the root causes of the immigration issue while simultaneously supporting foreign governments through taxpayer dollars.
This development has also drawn attention to broader political dynamics. Recently, Donald Trump, the US President-elect, announced that Elon Musk, the CEO of Tesla and SpaceX, alongside Vivek Ramaswamy, would lead a new Department of Government Efficiency (DOGE).
The department’s mission is to streamline government operations by reducing unnecessary regulations, cutting wasteful spending, and restructuring federal agencies.
Trump’s appointment of Ramaswamy, who has been an outspoken critic of government inefficiency, is seen as part of a wider effort to reshape the federal bureaucracy.
Ramaswamy’s criticism of the hotel deal can also be viewed in the context of his broader political platform. As a vocal advocate for reducing government waste and improving efficiency, he sees the rental agreement as a symbol of the misallocation of resources.
By highlighting the deal, Ramaswamy is underscoring what he sees as the need for more accountability and better use of public funds.
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