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Karen Williams's avatar

After reading this, I just want to cry...the clawback from NYC's Citi bank account is so illegal. I've been involved in these types of funding grants. The $12.50 per diem is a normal composition of these grants. And Americans are so easily swayed by messaging "high end luxury hotels" that they will believe it.

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OJVV's avatar

I would imagine that the "high-end luxury hotels" were, in fact, ordinary hotels. The market rate for 2 star hotels in NYC only appear to be "high-end" because relative to Wichita, KS the same hotel costs 1/4 the price. For example, a Choice Hotel room in Manhattan in may cost over $400/night. A comparable hotel in Wichita on the same day in May would be $100/night.

Regardless, let's say someone DID stay in a $1000/night hotel. Likely, it's because there was NO OTHER OPTION at that moment. While it would be alarming at first glance (and rightly so), the lack of attention to the specifics ($12.50/night of federal money was used, the rest was provided by the city or other organization) is just evidence of the manufactured outrage.

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Colleen Kochivar-Baker's avatar

They might have been high end luxury hotels one hundred years ago. You know, back when America was great and banks were more or less unregulated. sigh.

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Maggie's avatar

This was my thought too. I recently stayed at some of the 100+ year old luxury hotels in Chicago for $120 a night.

I've had hotter showers with better water pressure in multiple third world countries.

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JF's avatar

Willful ignorance and wanton lying are very tough opponents.

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Hortense's avatar

Maybe a $12.50/day hotel is a high end luxury hotel for these guys.

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Karen Williams's avatar

Actually, the difference in cost is made up by other non-federal funds. I don't know the actual $ amount, but the temporary housing used was a combination of what was available, including tents, shelter beds, hotel rooms, etc. The point is Musk is throwing out there the misinformation that the $80,000,000 they clawed back was used for luxury hotel rooms, so you think maybe $400/night, whereas of the $80,000,000, the max per diem for housing from this grant was $12.50/day per person. The grant could have covered food, case management, etc. But these programs tend to have blended funding to cover the actual costs. A hotel/motel might cut their day rate by 50% or more if they go to weekly cleaning, are guaranteed X number of book nights, etc.

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Hortense's avatar

I do know this, but it's always good see this kind of information shared wherever it can be shared. Thanks for the details!

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Karen Williams's avatar

You are so welcome.

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