NYC moves to sue Trump administration over FEMA funding

NEW YORK - New York City is reportedly moving to sue the Trump administration over the more than $80 million in FEMA funds it snatched. 

FEMA’s acting administrator said in court documents filed Tuesday that the money was being clawed back over concerns about "illegal activities" at a hotel.

City Comptroller Brad Lander, who is running for city mayor, said the money went missing overnight, and that his office was unaware the federal government had access to the city’s bank account.

Lander questioned the legality of the move, expressing that he had never seen a case where someone could "take money from your bank account because of shifting political winds."

He then urged the Adams administration to either file a lawsuit or permit him to hire his own attorneys to pursue a case against Trump.

The suit is set to be completed by Feb. 21.

The backstory:

Trump has called the FEMA agency a "very big dissapointment" and has floated the idea of getting rid of it entirely. 

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Feds cut $80M FEMA grant to NYC over allegations of luxury housing for migrants

City Comptroller Brad Lander says the money went missing overnight, and his office was unaware the federal government had access to the city’s bank account.

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.

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?

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 had been an affordable option for travelers before its closure.