NYC sues Trump admin over FEMA funds for migrants: Where does this leave Mayor Adams?
Mayor Adams speaks out on legal battle
Mayor Eric Adams sits down for a one-on-one interview with Fox 5’s Morgan McKay to discuss his ongoing legal battle, Governor Kathy Hochul’s push for increased oversight, and his plans for re-election. As a federal judge appoints an independent lawyer to review the DOJ’s move to drop charges without prejudice, Adams insists he has done nothing wrong and remains focused on running New York City.
NEW YORK - New York City is officially suing President Donald Trump's administration after FEMA revoked over $80 million in approved funding for migrant assistance.
What we know:
The funds were initially disbursed on Feb. 4, but were withdrawn "overnight" from the city's account on Feb. 11, without notice.
The city claims this action was unlawful and left it without essential resources to manage its ongoing migrant crisis.
SKIP TO: Migrant hotel stays FACT CHECK
What they're saying:
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Here's how much it costs NYC to care for a single migrant
The per diem rate for a single migrant household is more than previously expected. These costs add up quickly when considering the nearly 64,000 asylum seekers in the city's care.
Mayoral candidate and City Comptroller, Lander, was outraged after discovering FEMA had access to the city’s bank account without his office’s knowledge.
He pushed for a lawsuit against the Trump administration, launching a "pressure campaign" to force Mayor Eric Adams into action.
Lander publicly celebrated the campaign’s success in getting the mayor to move forward with legal action.
The other side:
Meanwhile, embattled New York City Mayor Adams, frustrated by the funding removal, had expressed mixed feelings about pursuing the lawsuit.
While acknowledging the broken immigration system, he stressed that NYC should not bear the entire financial burden of the crisis. He says" the $80 million that FEMA approved, paid, and then rescinded—after the city spent more than $7 billion in the last three years—is the bare minimum our taxpayers deserve."
The situation has left the mayor in a difficult position.
He faces political pressure from both the Trump administration and state officials like Governor Kathy Hochul, who are monitoring his actions closely.
Why you should care:
While the funds were designated for migrant assistance, the dispute highlights broader questions about how Adams will handle funding for migrants moving forward.
As the lawsuit progresses, the city is determined to recover the revoked funds, with Comptroller Lander vowing to keep pushing for their return.
What is the President saying?:
Trump has called the FEMA agency a "very big disappointment" and has floated the idea of getting rid of it entirely.
Elon Musk, head of the Department of Government Efficiency (DOGE), says FEMA spent millions illegally to house migrants in luxury hotels in New York City. He claims the money was intended for disaster relief in the U.S. but was wrongly used for high-end accommodations. Musk provided no evidence to back up his claim.
Migrants line up outside Roosevelt Hotel in Midtown Manhattan on Tuesday, August 1, 2023, while waiting for placement inside a shelter. The migrants, many from Central America and Africa, have been sleeping on the streets or at other shelters as the (Getty Images)
FACT CHECK
Claims:
- Critics claim FEMA sent $59 million last week to luxury hotels in New York City to house illegal migrants.
- Some Republicans also argue that the city’s migrant funds are taking money away from disaster relief for people hit by hurricanes or floods.
Facts:
- FEMA does not send money directly to New York hotels. It administers funds on behalf of U.S. Customs and Border Protection under the Shelter and Services Program, authorized by Congress in 2023.
- The Shelter and Services Program is separate from FEMA’s Disaster Relief Fund and has its own line item in the federal budget.
By the numbers:
According to city spokesperson Liz Garcia, the $59 million covers reimbursements for services provided between November 2023 and October 2024, including costs for hotels, security, food, and more. The other $19 million was for hotel expenses.
Were migrants living in luxury hotels?
Inside NYC's migrant crisis, the Roosevelt Hotel
FOX 5 NY's Rosanna Scotto goes inside the Roosevelt Hotel with city officials like Dr. Ted Long, Migrant Affairs Commissioner Manuel Castro, and NYC Mayor Eric Adams.
Most of the former hotels leased by the city are occupied by families with children. None would be considered "luxury" by most traveler standards.
This is backed up by a report last year from City Comptroller Brad Lander, who is now running for mayor in a bid to unseat Adams, which showed that the municipal government has paid on average $152 a night for rooms, the vast majority outside Manhattan.
Some of the Manhattan rooms were around $200 per night, but that's not a luxury rate.
Rates for five-star hotels in Manhattan typically go for $400 a night to well over $1,000.
The Roosevelt Hotel
In 2023, the city began leasing the former Roosevelt Hotel as an intake center for migrants after it closed in 2020 due to the COVID-19 pandemic.
Once a historic hotel, it was once an affordable option for travelers before its closure.