Judge Orders Name-Clearing Hearing for Former FEMA CFO Fired Over Alleged $59 Million Hotel Spending

A federal judge ruled on Friday that the Trump administration illegally fired former FEMA chief financial officer Mary Comans. The termination occurred in February 2025 over allegations that the agency spent millions on luxury hotels for illegal immigrants in New York City.

U.S. District Judge Michael Nachmanoff of the Eastern District of Virginia ordered lawyers for Comans and the administration to confer and submit a joint proposal within 14 days outlining a process for a name-clearing hearing. The judge indicated that discovery and a full evidentiary hearing before a federal magistrate judge would be appropriate.

The Department of Homeland Security accused Comans and three other FEMA officials of authorizing a $59 million payment for the hotel housing.

The payment was uncovered by the Department of Government Efficiency. Elon Musk wrote on X at the time that the funds were meant for American disaster relief. Comans and her attorneys argued the firing violated the Constitution and the Civil Service Reform Act by depriving her of property and liberty without due process.

Lawyers from the Democracy Defenders Fund and four other firms called the ruling a landmark win. FEMA is an agency within the Department of Homeland Security. The Supreme Court ruled on June 29 on the president's firing power, allowing removal of a Federal Trade Commission member while blocking removal of a Federal Reserve board member and returning that issue to lower courts.

Neither the Department of Justice, FEMA, nor DHS responded to requests for comment.