PICTURE CREDIT: ALAMY
NEW YORK: A federal lawsuit has been filed by the New York City against the Trump administration for alleged $80 million “money grab” after FEMA funding meant for the city’s migrant crisis response was secretly withdrawn from its bank accounts.
The funds were originally approved to reimburse expenses incurred since the spring of 2022, when the city became a focal point for asylum seekers.
The lawsuit, filed in the U.S. District Court for the Southern District of New York, claims the federal government abruptly rescinded the payment on February 11—despite FEMA having already approved and disbursed the funds.
Mayor Eric Adams condemned the federal government’s actions, emphasizing the city’s financial strain.
“With minimal federal assistance, our administration has managed an unprecedented crisis, sheltering over 231,000 people,” Adams said. “FEMA’s $80 million payout—later revoked—is a drop in the bucket compared to the $7 billion our taxpayers have shouldered over the past three years. We will fight to recover every dollar owed to New Yorkers.”
City Comptroller Brad Lander also weighed in, accusing the Trump administration of deliberately targeting New York.
“After my office uncovered that $80 million was quietly pulled from the City’s coffers, we pushed Mayor Adams to take legal action. The attorneys standing up to this blatant overreach deserve recognition, and we fully expect Donald Trump to return the money he took from New York,” Lander said.
The lawsuit argues that the federal government’s move was politically motivated, aimed at blocking funds based on opposition to how the city has handled the migrant crisis.
Meanwhile, former President Trump has suggested eliminating FEMA entirely, calling the agency “a very big disappointment” and criticizing its efficiency.
