New York City Sues Trump Administration Over Withheld Migrant Housing Funds
Background
On Friday, the city of New York filed a lawsuit against the Trump administration seeking to recover over $80 million that was previously granted by the Federal Emergency Management Agency (FEMA) to assist in housing migrants. The suit alleges that the funds were approved and disbursed by FEMA, but were subsequently withdrawn from the city’s bank account on February 11th without notice or administrative process.
Trump Administration’s Claims
The funding was revoked after Elon Musk made claims that the Department of Government Efficiency had found a $59 million FEMA payment to New York City that was being used to house illegal migrants in luxury hotels. President Trump repeated Musk’s claims and alleged that "massive fraud" was occurring.
New York City’s Response
New York City was awarded two separate grants during the Biden administration – one for $58.6 million and another for $21.9 million – to help cover the costs of housing 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), which Congress allocated $650 million last year to assist local governments in responding to the migrant crisis. There are currently fewer than 45,000 migrants staying in taxpayer-funded shelters in New York City, down from a peak of 69,000 over a year ago.
Lawsuit Details
The lawsuit was filed in the U.S. District Court for the Southern District of New York by the city’s law department against President Donald Trump, the U.S. Treasury, FEMA, and the U.S. Department of Homeland Security.
The lawsuit accuses the federal government of violating federal regulations and the terms of the SPP grant, as well as abusing its authority and obligations to implement congressionally approved and funded programs.
The suit argues that the federal government’s actions were a "money grab" and that the noncompliance letter provided to the city was "a mere cover" to conceal the administration’s true purpose of withholding the funds because it opposed their use on migrants.
City’s Demands
New York City is seeking to recoup the funds and has filed for a motion for a preliminary and permanent injunction, as well as a motion for a temporary restraining order (TRO).
Political Context
New York City Mayor Eric Adams defended the lawsuit and criticized the federal government’s actions, stating that the funds were approved, paid for, and then rescinded, while the city has spent over $7 billion of its own taxpayer money to address the migrant crisis over the last three years.
New York City Comptroller Brad Lander claimed that the lawsuit was initiated after he pressured Mayor Adams to take action. Lander is running against Adams in the upcoming mayoral election.
Conclusion
The lawsuit is the latest development in the ongoing dispute between the Trump administration and New York City over the issue of migrant housing. The outcome of the case could have significant implications for the city’s ability to manage the influx of migrants and for the federal government’s authority to withdraw funding from local governments.
