The Trump administration recently withdrew $188 million in federal funding intended to compensate New York City for providing shelter to migrants. This act has prompted New York City’s Mayor Eric Adams to vow a legal battle to reclaim these funds. The Federal Emergency Management Agency (FEMA) explained in an April 1 letter, shared earlier this week, that it was rescinding the grants due to the view that the money supported illegal immigration. Notably, this action includes approximately $80 million previously retrieved from New York City’s bank account in February.
The latest action would necessitate the return of an additional $106 million, which city officials claimed was utilized for migrant housing and care. Mayor Adams, whose office has already initiated legal proceedings to recover the initial $80 million, declared that the administration would also contest the further cancellations of grants. “Like their previous actions clawing back appropriated funds, these steps are unlawful,” Adams stated, highlighting the New York City Law Department’s efforts to assess the appropriate legal path to ensure the funds remain within the city, where he says they are rightfully designated.
The grants stem from a program approved by Congress and managed by FEMA to aid local governments and nongovernmental organizations in providing shelter and social services for migrants. However, FEMA’s acting director, Cameron Hamilton, conveyed in a correspondence to city officials that the grant’s objectives conflict with the current administration’s priorities, citing that many individuals benefiting from these services lack legal status and reside unlawfully in the U.S.
In response to an intense influx of migrants, New York City had resorted to leasing hotels and unoccupied buildings as emergency shelters. By law, the city is obligated to provide shelter to anyone requesting it. Among the establishments repurposed was the historic Roosevelt Hotel in midtown Manhattan, which transitioned into a shelter and registration hub for new arrivals to access social services. The city’s usage of the Roosevelt received criticism from Republicans and federal authorities, who labeled the venue a center for gang activities, an assertion that the city challenges as unsubstantiated in its funding lawsuit.
The city’s administration, meanwhile, has announced plans to terminate operations at the Roosevelt and several other migrant shelters by June, citing a significant drop in migrant entries and relocations to alternative accommodations. Mayor Adams, navigating scrutiny regarding his potential political ties with the Trump administration, especially after the dismissal of a federal corruption indictment against him, reiterated his commitment to challenging the federal decision: “We will defend every cent spent,” added Adams, further acknowledging certain aspects of the administration’s immigration policies, despite the ongoing conflict over funds.