New York City files lawsuit against Trump administration over seized FEMA funds
New York City has filed a federal lawsuit against President Trump, members of his administration and multiple U.S. agencies for what the city law department calls the unlawful seizure of over $80 million in FEMA funds.
The suit was filed Friday in the U.S. District Court for the Southern District of New York.
NYC says feds clawed back funding needed for asylum seeker crisis
According to the city law department, FEMA gave New York over $80 million on Feb. 4 as reimbursement for money the city spent to help shelter asylum seekers.
The suit states the federal government then removed those funds from a city bank account without notice or explanation on Feb. 11.
Officials say it wasn't until over a week later, on Feb. 19, that FEMA sent the city a letter stating the payments were being temporarily withheld.
The city wants to have the funds returned, and prevent the federal government from removing any additional money from any city bank accounts or withholding funds.
"Without a doubt, our immigration system is broken, but the cost of managing an international humanitarian crisis should not overwhelmingly fall onto one city alone," Mayor Eric Adams said in a statement. "With very little help from the federal government, our administration has skillfully managed an unprecedented crisis, which has seen over 231,000 people enter our city asking for shelter. The $80 million that FEMA approved, paid, and then rescinded — after the city spent more than $7 billion in the last three years — is the bare minimum our taxpayers deserve. And that's why we're going to work to ensure our city's residents get every dollar they are owed. Thank you to Corporation Counsel Goode-Trufant and the entire team at the Law Department for working to ensure New York taxpayers can start to be made whole again."
"After my office discovered that Elon Musk and his DOGE goon squad stole $80 million out of the City's coffers, we successfully pressured Mayor Adams to allow the City's lawyers to sue the federal government to get our money back. The lawyers who are standing up to President Trump and Eric Adams' collusion deserve praise and we look forward to Donald Trump returning the money he stole from New York," City Comptroller Brad Lander said in a statement.
FEMA cites concerns about gang, criminal activity at migrant hotel
Elon Musk, head of the White House's Department of Government Efficiency (DOGE), claimed the funding was being spent on luxury hotels to house migrants.
In the letter FEMA sent to city officials, they cited concerns about reports of gang and criminal activity at the Roosevelt Hotel.
Earlier this month, a Homeland Security spokesperson said in part: "FEMA was funding the Roosevelt Hotel that serves as a Tren de Aragua base of operations and was used to house Laken Riley's killer. There will not be a single penny spent that goes against the interest and safety of the American people."
The city says the concerns are unfounded.
