DOGE and HHS end $18M Monthly Contract for Empty Migrant Facility

Taxpayer Millions for an Empty Facility? Government Scraps Controversial Contract

Davy

• Published in News
• March 5, 2025

A federal contract worth $18 million per month has been abruptly terminated after reports surfaced that the taxpayer-funded facility it supported had been sitting completely empty. The contract, awarded to the nonprofit Endeavors (also known as Family Endeavors), was intended to maintain a migrant housing facility in Pecos, Texas, yet the facility never housed migrants during the contract period.

The Department of Government Efficiency (DOGE), a federal oversight agency, exposed the issue in a post on X (formerly Twitter), drawing attention to the large sums of money being spent on a vacant shelter. The Department of Homeland Security (DHS) quickly amplified the claim, calling for a federal investigation.

According to DOGE, Endeavors' contract with the Department of Health and Human Services (HHS) dates back to 2021, shortly after a former ICE employee and Biden transition team member joined the nonprofit. Financial records show that Endeavors' revenue surged from $50 million to $1.1 billion in just two years, raising concerns about government oversight and potential conflicts of interest.

Now, with the contract canceled and federal investigators looking into the matter, questions remain about how and why such a massive deal was approved in the first place.

The Department of Government Efficiency (DOGE) announced that the Department of Health and Human Services (HHS) has terminated a federal contract with Endeavors, a nonprofit that had been receiving $18 million per month to operate a vacant migrant facility in Pecos, Texas.

Endeavors, which has its headquarters in San Antonio, was awarded the contract in 2021 to run the overflow housing site for migrant families. However, DOGE claims the facility remained unused, while federal funding continued to flow.

After DOGE’s post on X, the Department of Homeland Security (DHS) urged U.S. Attorney Ed Martin to investigate, to which Martin responded, “Duly noted. We are on it.”

In response to the controversy, Endeavors issued a statement clarifying that its role was to maintain operational readiness at the Pecos shelter. The organization stated the facility was in Cold Status, meaning it was prepared to house up to 3,000 migrants at any time but was not actively in use.

Endeavors further asserted that all decisions regarding facility use were made by the federal government, not the nonprofit. The organization dismissed any allegations of corruption or mismanagement as "baseless."

Beyond the unused shelter, DOGE has raised concerns about how Endeavors secured its HHS contract. The oversight agency points out that a former ICE employee and Biden transition team member joined Endeavors shortly before the nonprofit was awarded the lucrative deal.

Financial records also reveal a staggering rise in Endeavors' revenue, which jumped from $50 million in 2020 to $658 million in 2021, before peaking at $1.1 billion in 2022.

With growing federal scrutiny and an official investigation underway, the canceled contract has ignited a broader debate on government spending, oversight, and transparency in handling taxpayer funds.

FULL STATEMENT FROM ENDEAVORS -

For more than 55 years, Endeavors has remained steadfast in its mission to serve those in need, upholding the values of compassion, integrity, accountability, and community. Founded by five Christian churches in Texas, our work reflects the best of American, faith-based values—neighbors helping neighbors, standing by those who have served, and providing critical support to vulnerable communities.

Since 2012, Endeavors has served migrant families and children under contracts with the federal government across multiple presidential administrations. We were one of 15 organizations awarded a contract in 2021 to assist the federal government in this area, and one of only three non-profits selected. Our selection was based on our proven experience, capacity, and more than a decade of performance.

As part of our contract, Endeavors was responsible for maintaining operational readiness at the Pecos shelter, ensuring the ability to scale from cold status (operationally ready but not actively serving children) to full use of 3,000 beds as needed. The vast majority of costs during cold status were allocated to facility operations, security, and IT services required to maintain readiness, in accordance with the contract terms.

Throughout our time operating the shelter, and in alignment with both the original contract and the subsequent competitively awarded agreement, federal officials were onsite daily, providing direct oversight and ensuring compliance with all contractual obligations. While we provided services as outlined in the contract, decisions regarding facility use and migrant sheltering locations were made by the federal government, not Endeavors.

We operate with full transparency and accountability, consistently earning the highest ratings under the federal Contractor Performance Assessment Reporting System (CPARS). Any claims of corruption or mismanagement are baseless.

Our focus remains on the communities we serve, guided by our deeply rooted faith-based values—supporting military and first responders and their families, disaster recovery efforts, survivors of domestic violence, and families facing homelessness.

Davy