New York City has taken legal action against the Trump administration over the sudden withdrawal of $80.5 million in federal grants that were intended to help cover the city’s expenses for housing migrants. The lawsuit, filed on Friday in a Manhattan federal court, challenges the administration’s claim that the city misused the funds. City officials argue that the February 11 decision to reclaim the money undermined Congress’ intent in approving the funding in the first place.
The legal dispute arose after the Federal Emergency Management Agency (FEMA) initially disbursed the funds to the city on February 4, only for the money to later disappear from the city’s bank account. Officials later confirmed that FEMA had retracted the payment, prompting the city to file a lawsuit demanding the return of the funds and a court order to prevent similar actions in the future.
In a social media post on February 12, Homeland Security Secretary Kristi Noem defended the decision, stating that she had personally ensured that the full amount was “clawed back” after FEMA officials improperly allocated it to migrant housing in New York City. The White House has yet to issue a response to the lawsuit.
President Donald Trump has repeatedly criticized FEMA for allegedly misusing taxpayer funds in Democrat-led cities. His advisor, Elon Musk, posted on February 10 that an internal government review revealed that $59 million of the $80.5 million had been spent on lodging migrants in high-end hotels. Musk claimed that the allocation of these funds violated federal law and directly contradicted Trump’s executive order.
Noem and a FEMA official further alleged that New York City misallocated FEMA funds to convert the Roosevelt Hotel in Manhattan into a migrant shelter. They also accused city officials of allowing the Venezuelan gang Tren de Aragua to operate from the hotel. However, New York City officials rejected these claims, stating that Musk’s assertions were inaccurate and that there was no evidence to support allegations of criminal activity among the migrants housed at the Roosevelt.
In response to the lawsuit, New York City’s Democratic mayor, Eric Adams, acknowledged that the immigration system was flawed but argued that the financial burden should not fall solely on the city. He emphasized that FEMA’s decision to revoke the funds was particularly unjust given that New York had already spent over $7 billion on migrant-related expenses in the past three years.
“The $80 million that FEMA approved, paid, and then rescinded is the bare minimum our taxpayers deserve,” Adams stated.
Raphael Obasiohia