NEW YORK (NewsNation) — A federal judge was expected to hear arguments on Wednesday over New York City’s request for an order forcing the Trump administration to return an $80.5 million FEMA grant intended to cover part of the cost of housing migrants.
Citing concerns of “illegal activity,” the Trump administration took back the sum as it seeks to crack down on the program, which is funded by Congress and administered by FEMA.
The federal government disbursed $80.5 million to New York City’s central bank account on Feb. 4 but took back the payment without warning on Feb. 11, the lawsuit states.
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“No lawful procedure permits Defendants — as they did here — to take back grant funds previously approved and paid without legitimate basis and without first following and complying with the steps required under the applicable rules, grant terms and conditions,” reads the complaint.
“Defendants have acted lawlessly, but have attempted, after the fact, to mask this fact with a semblance of following procedure,” it continued.
Trump has accused FEMA of wasting taxpayer money in Democratic-led areas. Trump adviser Elon Musk said, without providing evidence, in a February 10 post on X, that his government efficiency team had found that $59 million of the $80.5 million went toward housing migrants in “luxury” hotels.
“Sending this money violated the law and is in gross insubordination to the President’s executive order,” Musk wrote.
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In a statement announcing the lawsuit, Democratic New York City Mayor Eric Adams said, “Our immigration system is broken,” but the cost of fixing it should not overwhelmingly fall on the city alone.
“The $80 million that FEMA approved, paid and then rescinded — after the city spent more than $7 billion in the last three years — is the bare minimum our taxpayers deserve,” Adams said.
Adams separately faces criminal corruption charges brought last September under the Biden administration. Trump’s Department of Justice wants to dismiss that case, to free Adams to help Trump crack down on illegal immigration.
Reuters and NewsNation affiliate The Hill contributed to this report.
