NYC lawsuit against Trump admin targets $80M FEMA clawback
New York City has taken legal action against the Trump administration in an effort to reclaim over $80 million that was previously allocated to the city by the Federal Emergency Management Agency (FEMA) to house migrants. The lawsuit, filed on Friday, argues that the funds were initially approved and disbursed by FEMA, only to be withdrawn from a city bank account on February 11 without any notice or administrative process.
The funding was revoked following claims made by Elon Musk that a $59 million FEMA payment to New York City was being used to accommodate illegal migrants in luxury hotels. President Trump echoed Musk’s allegations and accused the city of engaging in “massive fraud.” As a result, the funds were pulled back, despite being awarded to New York City during the Biden administration to support the housing of migrants, many of whom were sent by Texas officials due to frustrations with the federal government’s handling of the influx of migrants at the southern border.
The city had received two separate grants totaling $80.5 million under the Shelter and Services Program (SPP), which was established by Congress to assist local governments in responding to the migrant crisis. Currently, there are fewer than 45,000 migrants being housed in taxpayer-funded shelters in New York City, down from a peak of 69,000 over a year ago.
The lawsuit, filed in the U.S. District Court for the Southern District of New York, targets President Trump, the U.S. Treasury, FEMA, and the Department of Homeland Security. It alleges that the federal government violated regulations and the terms of the SSP grant, as well as abused its authority in implementing congressionally approved and funded programs.
New York City Mayor Eric Adams has vocally supported the lawsuit, asserting that the city has spent over $7 billion of its own taxpayer money to address the migrant crisis. Adams emphasized that the city has housed more than 231,000 migrants throughout the crisis and is seeking to recoup the funds through a motion for a preliminary and permanent injunction, as well as a temporary restraining order.
City Comptroller Brad Lander claimed credit for pressuring Mayor Adams to pursue legal action against the federal government after discovering the missing funds. Lander criticized Adams for collaborating with federal immigration agencies and expressed confidence that the city’s lawyers would succeed in reclaiming the money taken by the Trump administration.
The lawsuit reflects the ongoing political tensions surrounding immigration policy and funding allocations at the federal and local levels. As the legal battle unfolds, New York City remains committed to securing the resources needed to support migrants and address the challenges posed by the humanitarian crisis at the southern border.
