New York City sued the Trump administration on Friday to reclaim $80 million in federal funds that was given to the city to deal with the influx of asylum seekers.
The New York City Law Department said it filed a federal lawsuit challenging the Trump administration’s unlawful seizure of over $80 million previously applied for, awarded, approved and paid by the U.S. Federal Emergency Management Agency, according to a press release.
These funds were paid to reimburse expenses already spent on the asylum seeker international humanitarian crisis that came to New York City’s doorstep in the spring of 2022 under a FEMA program to assist localities bearing the brunt of costs of providing shelter and services to individuals released by the U.S. Department of Homeland Security into U.S. communities.
The suit, motion for a preliminary and permanent injunction and motion for a temporary restraining order against the federal government argues that the funds that were previously reviewed, approved, and paid out by FEMA were removed out of a city bank account on Feb. 11, without notice or administrative process of any kind, violating federal regulations and terms of the Shelter and Service Program grant terms, as well as abusing the federal government’s authority and obligations to implement congressionally-approved and funded programs.
“Without a doubt, our immigration system is broken, but the cost of managing an international humanitarian crisis should not overwhelmingly fall onto one city alone,” said New York City Mayor Eric Adams. “The $80 million that FEMA approved, paid and then rescinded — after the city spent more than $7 billion in the last three years — is the bare minimum our taxpayers deserve."
On Feb. 4, FEMA disbursed about $80.5 million to the city under a program that Congress funded. However, on Feb. 11, the federal government, without any notice or explanation, clawed back those funds. On Feb. 19, the federal government belatedly provided the city a “noncompliance” letter that did not identify any noncompliance by the city. Rather, it announced “concerns,” which are unfounded and do not comport with how the city has managed the unprecedented crisis brought to its doorstep.
The city law department is arguing that the federal defendants’ withholding of these funds is arbitrary and capricious, contrary to law, ultra vires, and in excess of authority, without observance of lawful procedures.
There are currently less than 45,000 migrants receiving city shelter services, down from a high of 69,000 in January of 2024 and out of the more than 231,000 that have arrived in New York City seeking city services since the spring of 2022.
