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FEMA Upholds Major Cut to New York City Anti-Terror Grants

Local officials demand reversal of the unexplained reduction following years of steep, risk-based funding declines

A police officer stands next to the glass window with a bullet hole near the scene of a deadly mass shooting in Manhattan, New York City, U.S. July 29, 2025. REUTERS/Mike Segar/File Photo
U.S. Senate Minority Leader Chuck Schumer (D-NY) looks on during a press conference following the weekly caucus lunch on Capitol Hill in Washington, D.C., U.S., July 29, 2025. REUTERS/Kent Nishimura/File Photo
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Overview

  • A FEMA notice on August 1 confirmed a $64 million (41%) reduction in New York City’s Urban Area Security Initiative allocation days after a deadly Manhattan shooting.
  • The agency reversed a July pledge and slashed the State Homeland Security Program by 38%, advising cities to draw on the now-smaller grant pool.
  • No formal justification has been provided, and Governor Hochul, Mayor Adams and Senator Schumer have publicly called on FEMA to restore the funds.
  • Washington, D.C., San Francisco and Los Angeles also face double-digit cuts under FEMA’s risk-analysis formula, with Washington seeing the largest drop at 44%.
  • New York’s counterterrorism infrastructure, including the Domain Awareness System of cameras and sensors, has historically depended on these federal grants.