New York City Sues Trump Administration Over $80.5 Million in Migrant Housing Grants.

On Friday, New York City filed a lawsuit against the Trump administration, contesting the withdrawal of $80.5 million in federal grants designated for housing migrants. The city’s complaint, submitted in Manhattan federal court, refutes federal allegations of fund misappropriation, arguing that the actions taken on February 11 undermined Congress’s intent in appropriating these funds.

The dispute arises from funds disbursed by the Federal Emergency Management Agency (FEMA) on February 4, which subsequently vanished from a city bank account. Homeland Security Secretary Kristi Noem claimed to have reclaimed this payment, referring to it as a prudential measure against alleged mismanagement by “deep state activists” at FEMA.

New York City’s lawsuit demands the reinstatement of the $80.5 million grant and seeks an injunction to prevent any similar future rescissions. The White House has yet to issue a statement regarding these developments.

In the background, President Donald Trump has criticized FEMA for purportedly squandering taxpayer funds in Democratic-controlled regions. His advisor, Elon Musk, amplified these sentiments on social media, alleging that around $59 million was used to house migrants in luxurious accommodations, in violation of the law.

Conversely, New York City officials have labeled Musk’s assertions as inaccurate and denied claims linking criminal activity to those housed at the Roosevelt Hotel, which was converted into a migrant shelter. Mayor Eric Adams remarked that while the immigration system is flawed, the financial burden of addressing it should not rest disproportionately on the city’s shoulders. “The $80 million that FEMA approved, paid and then rescinded… is the bare minimum our taxpayers deserve,” Adams stated.

As the legal proceedings unfold, the implications for both New York City and federal housing policy for migrants remain to be seen.