NYC Files Lawsuit Against Trump Administration for $80.5 Million Related to Illegal Immigrants
The city of New York claims that the Trump administration unexpectedly reallocated funds from a bank account in New York City.
On Friday, New York City initiated a lawsuit against the Trump administration for withdrawing $80.5 million in grants intended to cover the city’s expenses related to housing undocumented immigrants.
On February 11, the White House reclaimed funds that were initially disbursed to the city through the Federal Emergency Management Agency’s (FEMA) Shelter and Service Program (SSP) for the support of undocumented immigrants.
The lawsuit asserts that the federal government did not adhere to FEMA processes or federal regulations.
The city contends that it requested and received the funds, which were utilized to reimburse its expenses incurred while addressing the influx of undocumented immigrants beginning in the spring of 2022.
FEMA transferred the funds to New York City on February 4, but just one week later, the agency reclaimed them.
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In its lawsuit, the city asserts that the funds were recovered without prior notification or proper administrative procedure, which contradicts the terms of the SSP grant.
“I have retrieved the full payment that FEMA officials unilaterally awarded to NYC for migrant accommodations.”
New York City is asking the court to mandate the return of the $80.5 million and to prohibit similar actions in the future.
Mayor Adams mentioned that the city has expended over $7 billion on managing the migrant crisis over the past three years.
“That’s why we are committed to ensuring that our city’s taxpayers receive every dollar they are entitled to. I appreciate Corporation Counsel Goode-Trufant and the entire Law Department team for their efforts to help New York taxpayers begin to recover,” he added.
Elon Musk indicated in a post on X on February 10 that the Department of Government Efficiency (DOGE) reported that $59 million of the $80.5 million was allocated to accommodate undocumented immigrants in luxurious hotels.
Noem also noted that the city utilized the funds to convert the Roosevelt Hotel in midtown Manhattan into a shelter for undocumented immigrants, which led to its designation as a base of operations for the Venezuelan gang, Tren de Aragua.
The city refuted Musk’s claims, asserting they were inaccurate and unsubstantiated regarding the Roosevelt Hotel.
It clarified that the funds were allocated to the city for the purpose of supporting shelter and related assistance provided by non-federal entities to alleviate overcrowding in U.S. Customs and Border Protection’s short-term holding facilities.
“The suit filed today in the U.S. District Court for the Southern District of New York contends that the letter is merely a pretext to disguise the true objective of the defendants’ ‘money-grab’ — which, as many have publicly stated, is to permanently withhold the funds out of opposition to the purposes for which the funds were appropriated, awarded, approved, and distributed,” the city asserted in a press release.
Mayor Adams acknowledged that the immigration system is flawed, but disputed the idea that the city should bear the financial burden of rectifying it without federal assistance.
Adams had a meeting on February 13 with Tom Homan, the White House border czar.
