Bring a large pot of salted water to a boil. Add penne pasta and cook according to package instructions until al dente, about 8-10 minutes. Drain and set aside.

In a large skillet set over medium-high heat, brown the ground beef and sausage, breaking it up until fully cooked, about 5-7 minutes. Add diced onions and bell peppers, cooking until softened, about 3-4 minutes. Drain excess grease.

Add onion and garlic powders to the meat and veggie mixture. Stir to mix evenly and cook together for 1 additional minute.

Stir in undrained Rotel tomatoes, milk, and Velveeta cheese. Reduce heat to medium, cover, and stir occasionally until cheese melts and sauce is creamy, about 5-6 minutes.

Once the sauce is smooth, add cooked penne pasta to the skillet and gently stir until all pasta is evenly coated with the sauce.