New York City Sues Trump Administration Over $80 Million FEMA Fund Seizure

The lawsuit challenges the federal government's rescission of migrant shelter funds, accusing the administration of bypassing legal procedures.

New York City filed a federal lawsuit against the Trump administration to recover $80.5 million in FEMA funds rescinded without prior notice.
The funds were originally allocated to reimburse the city for migrant shelter costs, which have exceeded $7 billion over three years.
The Trump administration justified the clawback by alleging misuse of funds, citing concerns raised by Elon Musk's Department of Government Efficiency.
Mayor Eric Adams criticized the rescission as unlawful and vowed to ensure the city receives the funds owed to its taxpayers.
The lawsuit follows accusations of a controversial quid pro quo between Adams and the Trump administration, further complicating their political relationship.