The Federal Emergency Management Agency (FEMA) has reclaimed over $80 million from New York City, intensifying an ongoing conflict between the Trump administration and the city concerning financial aid for the accommodation of migrants.
This action followed a federal court’s refusal to halt FEMA’s recovery of the funds.
The funds in question include a $59 million grant that was challenged earlier this week, along with another $21.5 million award, according to City Comptroller Brad Lander.
The money’s absence was noted overnight, with Lander expressing surprise that federal authorities had access to the city’s bank account without prior notification to his office.
Mayor Eric Adams, a Democrat, announced that city officials had reached out to the White House regarding the retrieval of the funds and are planning an emergency meeting with FEMA, as well as examining potential legal paths forward.
He is scheduled to meet with Tom Homan, the border czar under President Trump, in New York on Thursday to further discuss the situation.
This represents a significant initial challenge for Adams in his relationship with Trump’s administration, particularly after the U.S. Department of Justice recently ordered federal prosecutors in Manhattan to dismiss corruption charges against the mayor.
The aim, according to a top official, was to free Adams to support the Republican President’s immigration policy.
The grants were sought and awarded during Joe Biden’s presidency but were only disbursed last week, as stated by city officials.
Shortly thereafter, Trump advisor Elon Musk remarked on social media that the $59 million had been allocated to house migrants in “luxury hotels,” although no evidence accompanied his assertion.
Over the past two years, New York City has converted several budget hotels and vacant buildings into shelters for migrants.
In court documents, FEMA’s acting administrator outlined that the funds were being reclaimed due to concerns tied to unlawful activities at one of the hotels.
Lander questioned the legality of these actions, noting that he had never encountered a case where an entity was permitted to access someone’s bank account and withdraw funds based on “shifting political winds.”
Lander, who is a critic of Adams and will be competing against him in the upcoming Democratic primary in June, referred to the situation as a crucial evaluation of whether the city maintains independent leadership.
During a press briefing, White House press secretary Karoline Leavitt indicated that the administration deemed funding hotel accommodations for migrants as an unreasonable expenditure while FEMA is engaged with expensive disaster recovery efforts in other regions.
Homeland Security Secretary Kristi Noem shared on social media that she had successfully reclaimed the full payment that had been made to New York City for the migrant shelters.
A federal judge affirmed on Wednesday that the administration’s efforts to withhold FEMA’s funds from the city would proceed.
U.S. District Judge John McConnell from Rhode Island declared that the funds were not protected by a previous order meant to prevent the administration from pausing federal funding.
Additionally, the government terminated four employees accused of bypassing leadership to facilitate these transactions.
Such payments have historically been normalized through a federal program aimed at assisting with costs attributed to surges in migration.
Many of the former hotel sites leased by the city currently house families with children and would not generally be classified as “luxury” accommodations by typical travel standards.
Moreover, in 2023, the city commenced leasing the Roosevelt Hotel building as an intake center for migrants seeking city services.
The hotel, which shut its doors in 2020 due to the COVID-19 pandemic, has a storied history but had transitioned into a more affordable lodging option in its final years.
New York City law mandates that shelters must be provided for anyone in need, particularly as the usual homeless shelter system was inundated with incoming individuals.
The hotel currently serves both as a processing center for migrants applying for services and as a temporary residence for numerous families, who are permitted to stay for a maximum of 60 days.
The Shelter and Services Program, funded by Congress and administered by FEMA, has become a contentious topic for criticism among Republicans, who inaccurately assert that it diverts resources from individuals affected by hurricanes or flooding.
