Categories: Politics

NYC migrant crisis costs set to soar past $5 Billion for shelters, security, and food — could double by 2025

NEW YORK, US - AUGUST 02: Migrants line up outside Roosevelt Hotel while waiting for placement inside a shelter as asylum seekers camp outside the hotel as the Manhattan relief center is at full capacity in New York, United States on August 02, 2023. Since last spring, New York City has experienced a staggering influx of tens of thousands of asylum seekers. In response to the surge in migration, the city has established more than 160 sites to accommodate and assist these individuals. New York Mayor Eric Adams stated in early June that the city takes on important responsibilities by providing shelter, food, clothing and other essential services to incoming asylum seekers. (Photo by Fatih Aktas/Anadolu Agency via Getty Images)

The financial strain from the migrant crisis continues to grow.

New York City has likely surpassed $5 billion in expenses related to services for migrants, with nearly $2 billion spent solely on housing the influx of new arrivals, according to city data.

The city’s online asylum-seeker funding tracker shows that a combined $4.88 billion was spent across fiscal years 2023 and 2024. Given the current spending rate, the city has likely exceeded $112 million since the new fiscal year began on July 1, pushing the total above $5 billion.

Mayor Eric Adams’ administration projects that costs could double, reaching $10 billion by the end of the three-year period ending June 30, 2025.

The expenses so far include:

$1.98 billion on housing and rent
About $2 billion on services and supplies
Nearly $500 million on food and medical costs
Another $500 million on IT, administrative, and other costs

The NYPD alone has spent $21 million on public safety and security in response to the disorder around city-funded migrant shelters. The total cost of the crisis is nearly equal to the entire NYPD budget of $5.75 billion.

This week, the Department of Homeless Services posted two more contracts totaling $40 million to provide services to migrants at hotels converted into emergency shelters, including properties in the heart of the Broadway tourist district.

The city is currently caring for over 63,900 migrants across 210 sites in the shelter system.

Addressing the ongoing crisis, Adams’ Chief of Staff, Camille Joseph Varlack, emphasized that this is a global issue and not just a problem for New York City. Varlack added that city staffers are working to move migrants from hotels to other locations, though challenges remain, especially in transitioning migrants from shelter settings to housing when many lack official documentation for legal employment.

Despite a public backlash to shelters in many parts of the city, Adams stated that the situation has become more manageable, though the city is still “not out of the woods.” He credited policies such as shelter stay limits and a decrease in border crossings with lessening the migrant population and curbing skyrocketing costs.

Herbert Bauernebel

Herbert Bauernebel has been reporting from New York since 1999 and currently works for Bild.de, OE24 TV, and US Live. He also runs the news portal AmerikaReport.de. Bauernebel has covered nearly all major US events of the past quarter-century, including 9/11, Hurricane Katrina, Barack Obama’s election, Donald Trump’s surprise victory, the pandemic, last year’s election showdown, as well as natural disasters such as hurricanes and oil spills. He has also reported firsthand on international events, including the Asian tsunami, the Haiti earthquake, and the Fukushima disaster. He lives in Brooklyn with his family and holds degrees in communication and political science from the University of Vienna. Bauernebel is the author of a book about his experiences on 9/11, And the Air Was Full of Ash: 9/11 – The Day That Changed My Life.