The Department of Government Efficiency (DOGE) revealed that the Department of Health and Human Services (HHS) terminated its contract with Family Endeavors, a nonprofit that had been paid $18 million per month since March 2024 to operate an unused overflow housing facility in Pecos, Texas.
In a social media post, DOGE exposed the shocking arrangement, highlighting the nonprofit’s financial explosion. “As a result, Family Endeavors’ cash and portfolio of investments grew from $8.3M in 2020 to $520.4M in 2023,” the post stated.
The story took a deeper twist when it was revealed that a former U.S. Customs and Immigration Enforcement employee—who also served on the Biden transition team—joined Family Endeavors in early 2021. Soon after, the organization secured a lucrative sole-source contract with HHS to manage overflow housing for migrant children.
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Despite the facility being unoccupied, the payments continued for months. However, with national licensed facility occupancy dropping below 20%, HHS finally decided to shut down the contract, saving taxpayers over $215 million per year, according to DOGE.
The San Antonio-based nonprofit has yet to respond to media inquiries, including one from Fox News Digital.
Federal authorities are now being urged to investigate. Ed Martin, the U.S. Attorney for Washington, D.C., was tagged in the social media post exposing the deal. His response was swift and direct: “I see it. We will dig into this.”
The revelation comes amid a broader government spending crackdown spearheaded by DOGE and its outspoken leader, Elon Musk. On Wednesday, Musk reaffirmed the group’s aggressive goal of eliminating $100 trillion in wasteful government spending. According to Fox News’ Peter Doocy, Musk estimated that DOGE could reach this target if they cut $4 billion per day through September.
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As scrutiny intensifies, this case raises serious questions about oversight, accountability, and the ease with which taxpayer funds can be funneled into questionable contracts. With the federal government now promising to investigate, the real question remains: How many more of these deals exist?
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