New York City leaders are calling the Trump administration’s move to revoke more than $80 million from the city’s bank accounts over migrants “highway robbery.” The Trump administration revoked a $80.5 million payment from the Federal Emergency Management Agency’s (FEMA) Shelter and Services program on Feb. 4. New York City received the money under the Biden administration to house asylum-seekers and migrants.
“President Trump and his crony Elon Musk illegally executed a revocation of $80 million in congressionally appropriated FEMA funding from New York City’s bank accounts,” Lander said in a statement. “This highway robbery of our funds directly out of our bank account is a betrayal of everyone who calls New York City home.”
FEMA, a subagency under the Department of Homeland Security (DHS), administered the funds. According to Politico, a 2024 report from Lander’s office found the city spent around $156 per night on hotel rooms booked through an agreement with the Hotel Association of New York City.
DHS Secretary Kristi Noem confirmed the Trump administration “clawed back the full payment” to New York City from FEMA.
Noem alleges, without any evidence, that FEMA was funding the Roosevelt Hotel. She says the hotel is a “Tren de Aragua” base of operations that was also used to house Jose Ibarra. Ibarra is an undocumented migrant from Venezuela who was convicted of murdering University of Georgia student Laken Riley. Tren de Aragua is a Venezuelan gang that has been a focal point in Trump’s deportation plans.
“Mark my words: there will not be a single penny spent that goes against the interest and safety of the American people,” said Noem.
City Leaders Warn New York City Programs Could Be Cut
The Trump administration’s decision to revoke funding came days after Elon Musk said DOGE “discovered” it. Musk called it a “gross insubordination to the President’s executive order.”
New York City leaders say the funding could result in cuts to city services.
“We can’t recover money we already spent on shelter and services for asylum seekers,” said Lander.
“So, it would require cutting $80 million of some other city expenses.”
In addition to revoking funding, the new administration fired four FEMA employees, including the agency’s chief financial officer.
Lander is not letting the issue go and called out current mayor Eric Adams for his inaction in standing up to President Trump.
“If Mayor Adams continues to be President Trump’s pawn, my Office will request to work in partnership with the New York City Law Department to pursue aggressive legal action,” said Lander.
In the meantime, Mayor Adams says his office is conducting an investigation into how this occurred.
“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,” Adams posted on X.
“The Corporation Counsel is already exploring various litigation options.”
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