New York City filed a lawsuit against the United States President Donald Trump administration on Friday, alleging that the federal government unlawfully reclaimed $80.5 million in grants intended to help cover the city’s costs of housing migrants.
The complaint, filed in Manhattan federal court, accuses federal officials of misrepresenting the city’s use of the funds and undermining Congress’s intent in appropriating the money.
The dispute began when the Federal Emergency Management Agency paid the funds on February 4, only to withdraw them from the city’s bank account on February 11. Homeland Security Secretary Kristi Noem confirmed the clawback in a post on X (formerly Twitter), stating, “I have clawed back the full payment that FEMA deep state activists unilaterally gave to New York City migrant hotels.”
The White House has not yet commented on the lawsuit, which demands the return of the $80.5 million and seeks an injunction to prevent similar actions in the future.
President Donald Trump, a Republican, has repeatedly criticized FEMA for what he describes as wasteful spending in Democratic-led areas. Trump’s adviser, Elon Musk, amplified these claims in a February 10 post on X, alleging that $59 million of the $80.5 million grant was used to house migrants in luxury hotels. “Sending this money violated the law and is in gross insubordination to the President’s executive order,” Musk wrote.
Noem and a FEMA official further accused New York City of misusing FEMA funds by converting the Roosevelt Hotel in midtown Manhattan into a migrant shelter and allowing the Venezuelan gang Tren de Aragua to use the hotel as a base of operations. However, New York City officials dismissed these claims, stating that Musk’s post was riddled with inaccuracies and that allegations of criminal activity by migrants at the Roosevelt Hotel were unsupported.
In a statement announcing the lawsuit, New York City’s Democratic Mayor, Eric Adams, emphasized the financial burden the city has shouldered in addressing the migrant crisis. “Our immigration system is broken, but the cost of fixing it should not overwhelmingly fall on the city alone,” Adams said. “The $80 million that FEMA approved, paid, and then rescinded – after the city spent more than $7 billion in the last three years – is the bare minimum our taxpayers deserve.”
The lawsuit highlights the ongoing tension between New York City and the Trump administration over immigration policies and federal funding. As the city grapples with the financial and logistical challenges of housing migrants, the legal battle underscores the broader national debate over responsibility for addressing the migrant crisis and the role of federal support in mitigating its impact on local communities.
New York City’s lawsuit seeks to hold the federal government accountable for what it describes as an unjustified and harmful withdrawal of critical funds, while also pushing back against allegations of misuse and mismanagement.
