NYC Sues Trump Administration Over $80M Migrant Shelter Fund Clawback

The city claims the funds were rescinded unlawfully after being approved and disbursed by FEMA to address the migrant housing crisis.

New York City has filed a federal lawsuit seeking to recover over $80 million in FEMA funds rescinded by the Trump administration without prior notice.
The funds were part of a congressionally approved program to reimburse local governments for costs related to housing migrants, including shelter, food, and security services.
The Trump administration justified the clawback by alleging mismanagement and misuse of funds, citing claims—promoted by Elon Musk—of spending on luxury hotels, which NYC officials deny.
Mayor Eric Adams defended the lawsuit, emphasizing the city has spent over $7 billion on managing the migrant crisis and asserting the clawback violated federal regulations.
The lawsuit also comes as Adams faces criticism for cooperating with federal immigration enforcement and allegations of a quid pro quo with the Trump administration to dismiss corruption charges against him.