Trump Administration Claws Back $80 Million Sent to NYC to House Migrants
Just days after Trump administration officials said they would suspend funding to New York City used to house and assist migrants, the Federal Emergency Management Agency (FEMA) went a step further and revoked $80 million in payments that had already cleared, city Comptroller Brad Lander said Wednesday.
Lander, who is among candidates challenging Mayor Eric Adams in June’s Democratic primary, said officials in his office identified the unprecedented clawback of money – which was a reimbursement for funds the city has already spent.
Funding in Jeopardy
The city had been promised $237 million in such reimbursements by the Biden administration, out of roughly $7 billion the city has spent to deal with an influx of more than 200,000 migrants since 2022. Of the $237 million, $37 million has yet to be reimbursed, according to Lander, while $80.5 million of $200 million paid out is newly in contention after billionaire Elon Musk, recently tapped by President Donald Trump to lead a review of federal spending, claimed without evidence that the grant went to luxury hotels and said that it violated the law and went against a presidential executive order.
FEMA’s Withdrawal of Funds
FEMA’s withdrawal of funds from the city’s coffers has left the city scrambling to understand how the funding was clawed back. "This highway robbery of our funds directly out of our bank account is a betrayal of everyone who calls New York City home," Lander said ahead of a press conference outside his office building in Lower Manhattan. He noted that the funding was capped at $12.50 per night.
City’s Response
Mayoral spokesperson Liz Garcia said City Hall is conducting an investigation into how the funding clawback occurred and that city lawyers are exploring their legal options. "Our office has already engaged with the White House about recouping these funds and we’ve requested an emergency meeting with FEMA to try and resolve the matter as quickly as possible," Garcia said in a statement.
White House and FEMA Silence
The White House and FEMA press offices did not respond to emails from THE CITY seeking information on the move. However, Department of Homeland Security Secretary Kristi Noem took personal credit for the funding reversal, alleging without providing proof that the payments were allocated "unilaterally" by FEMA "activists."
FEMA Officials Terminated
The New York Times reported Tuesday that four FEMA officials were terminated – including the agency’s chief financial officer – in relation to the funding allocation to New York City, even though, according to Lander, the funds came as part of two grant agreements made by the Biden administration in fiscal years 2023 and 2024 that simply hadn’t been paid until last week.
Other Cities and States Receive Funding
FEMA records posted online show that other cities, states, and organizations – including in Texas and Arizona – received allocations under the same program from the prior administration. But New York City is the only grantee publicly targeted by Musk.
The Bigger Picture
The funding kerfuffle came just two days after the U.S. Department of Justice ordered the Manhattan U.S. Attorney’s office to dismiss "without prejudice" its corruption case against Adams, who was indicted in September on charges that included bribery. A memo written by acting U.S. Deputy Attorney General Emil Bove Monday said the Justice Department acted because the case interferes with Adams’ ability to run for re-election and to cooperate with Trump’s immigration enforcement efforts.
Conclusion
The funding reversal is a significant blow to the city’s efforts to support migrants and a test of Mayor Adams’ independence. The city will continue to explore its legal options and seek reimbursement for the funds that were withdrawn.
Frequently Asked Questions
- What is the total amount of funding that New York City has spent to deal with the migrant crisis?
- Roughly $7 billion
- How much of this funding has been reimbursed by the Biden administration?
- $157 million
- What is the current status of the corruption case against Mayor Eric Adams?
- The case has been dismissed "without prejudice" by the U.S. Department of Justice.
