NYC pays $220 mn to rent Pak govt-owned hotel, Ramaswamy calls deal 'nuts'

Indian-origin Republican leader Vivek Ramaswamy has expressed anger over the decision of the City of New York to pay $ 220 million in rent for a hotel owned by the Pakistan government, which meant that US taxpayers are "effectively paying a foreign government to house illegals".

In a post on X, Ramaswamy stated, "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."

Ramaswamy's statement followed a posting by author John LeFevre who stated that the NYC renting out the entire Roosevelt Hotel in Manhattan that is owned by Pakistan, was part of a $ 1.1 billion International Monetary Fund (IMF) bailout package to help Islamabad avoid defaulting on international debt. 

Sharing a post on X, LeFevre stated, "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."

In 2023, Pakistan government leased out Roosevelt Hotel, a property of Pakistan International Airlines (PIA) to the New York City Administration for three years against $ 220 million, as per a report in the Dawn. At the time, Pakistan's Federal Minister for Railways and Aviation Khawaja Saad Rafique said that a contract was signed between the government and the NYC administration/government.

Recently, US President-elect Donald Trump had announced that Elon Musk, CEO of Tesla, SpaceX, and 'X' along with Indian-origin Vivek Ramaswamy will lead the new Department of Government Efficiency (DOGE).

"Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies - Essential to the "Save America" Movement. This will send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!," Trump had said in his annoncement.

The DOGE will partner with the White House and the Office of Management and Budget to drive large-scale structural reform and create an entrepreneurial approach to government.