Adams Sues Trump Admin Over Clawback of $80M Migrant Shelter Funds From NYC; NYC Sues After Trump Admin Claws Back $80M Migrant Housing Grant

Adams sues Trump admin over clawback of $80M migrant shelter funds from NYC:

New York City says the federal funding was previously approved by Congress to be spent on migrant housing

New York City filed a lawsuit against the Trump administration on Friday to recoup $80.5 million of congressionally approved migrant funding the feds quietly seized from the city’s coffers last week.

The city’s Law Department blasted President Trump for conducting an “unlawful money grab” that snatched Federal Emergency Management Agency payments without any advance notice, according to the suit filed in the US District Court in the Southern District of New York.

The payments were dispersed to help pay back local governments, including New York City, for shouldering the massive cost of the migrant crisis.

“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 Friday night.

“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 The $80 million that FEMA approved, paid, and then rescinded — after the city spent more than $7 billion in the last three years — is the bare minimum our taxpayers deserve,” he continued.

“And that’s why we’re going to work to ensure our city’s residents get every dollar they are owed.”

Trump, Homeland Security Secretary Kristi Noem and Treasury Secretary Scott Bessent are among the defendants listed in the suit.

The sudden withdrawal of FEMA funds from New York City’s accounts unfolded Feb. 11 — without Adams’ knowledge — just days after Elon Musk claimed his Department of Government Efficiency discovered $59 million was being wasted on “luxury hotels” to house illegal migrants. —>READ MORE HERE

New York City says the federal funding was previously approved by Congress to be spent on migrant housing

New York City filed a lawsuit against the Trump administration on Friday seeking to wrestle back more than $80 million previously sent to the city via the Federal Emergency Management Agency to house migrants.

The suit argues that the funds were previously approved and then paid out by FEMA, only to be removed from a city bank account on Feb. 11 without notice or administrative process.

The funding had been revoked after Elon Musk claimed that the Department of Government Efficiency found a $59 million FEMA payment to New York City that was being used on luxury hotels to house illegal migrants. Trump later repeated Musk’s claim and argued that “massive fraud” was happening.

New York City was awarded two separate grants during the Biden administration – one for $58.6 million and another for $21.9 million – as the city attempted to pay to house migrants, many of whom were sent by Texas officials who were frustrated with the Biden administration’s handling of the influx of migrants entering the U.S. through the southern border.

The payments were made under the Shelter and Services Program (SPP) that Congress appropriated $650 million for last year to help local governments respond to the migrant crisis. There are currently fewer than 45,000 migrants staying at taxpayer-funded shelters in New York City, up from a high of 69,000 more than a year ago.

Friday’s lawsuit was filed in the U.S. District Court for the Southern District of New York by the city’s law department, which handles the city’s legal affairs, against President Donald Trump, the U.S. Treasury, the Federal Emergency Management Agency and the U.S. Department of Homeland Security.

The lawsuit accuses the federal government of violating federal regulations and the terms of the SSP grant, as well as abusing the federal government’s authority and obligations to implement congressionally approved and funded programs. ­

The suit argues that on Feb. 19, the federal government belatedly provided the city with a “noncompliance” letter that did not identify any noncompliance by the city. —>READ MORE HERE

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