Topline
New York City officials alleged Wednesday the Federal Emergency Management Agency revoked $80 million in grants from the city’s accounts amid a feud with the Trump administration over the city’s use of federal funds to house migrants—a move the city’s comptroller called “illegal” and “highway robbery.”
The contested funding was appropriated by Congress and allocated by FEMA to New York City. (Photo by ... [+]
Key Facts
Mayor Eric Adams confirmed in a tweet the government clawed back $80 million, which he said was awarded by FEMA under the Biden administration but paid out last week, adding the city is conducting an internal investigation into how the grant money was pulled while the city’s law department is “exploring various litigation options.”
New York City Comptroller Brad Lander claimed the revocation of the funds Tuesday afternoon was "illegally executed” and “highway robbery,” calling on Adams to take the matter to court.
The response from New York City officials comes after tech billionaire and Department of Government Efficiency head Elon Musk and Cameron Hamilton, FEMA’s acting administrator, alleged Monday $59 million in now-suspended FEMA funds were being used to house migrants in “luxury” hotels.
New York officials pushed back against Musk’s misleading claims and have said hotel fee payments were not made on luxury hotels, with Lander noting in a Wednesday press conference the funds approved as part of FEMA’s Shelter and Services Program have a $12.50 per night limit for migrants.
Hamilton said in a Tuesday court filing the money, which was appropriated by Congress and allocated by FEMA to New York City, was suspended over concerns it was being used to facilitate “illegal activities.”
The comptroller’s office told Forbes the funds consisted of a $58.6 million allocated payment for FEMA’s Shelter and Services Program and a $21.9 million competitive payment for the program (the allocated funding is assigned to entities through predetermined eligibility while competitive funding is applied for).
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What Does Fema’s Shelter And Services Program Do?
The program was created in 2023, is administered by FEMA and U.S. Customs and Border Protection and reimburses non-federal entities for migrant-linked expenses. The program had $650 million in funding for fiscal year 2024. Primary services for migrants under the program include shelter, food, transportation, short-term medical care and personal hygiene supplies, according to FEMA.
Tangent
When reached for comment, the White House echoed a tweet from Homeland Security Secretary Kristi Noem that without evidence said the Roosevelt Hotel in New York City has been used as a “base of operations” for a Venezuelan gang known as Tren de Aragua. The hotel, which closed in 2020 before being converted to a migrant shelter in 2023, has built a reputation as New York’s new Ellis Island, processing nearly 150,000 migrants between May 2023 and May 2024. Migrants processed at the hotel receive bed assignments for one of the Roosevelt’s 850 rooms or for shelters throughout the city, according to The New York Times, which noted the hotel is run by the city and staffed by contractors.
Key Background
Musk’s misleading claims about the FEMA funds were made Monday, provoking Hamilton to suspend the payments. The DHS said in a statement Tuesday it fired four FEMA officials who made the payments including FEMA’s chief financial officer, Mary Comans. President Donald Trump has publicly blasted FEMA and pushed for the agency to be shut down. He said Tuesday in a Truth Social post FEMA “HAS BEEN SLOW AND TOTALLY INEFFECTIVE,” after calling for its termination. Trump and Musk’s opposition to the agency comes amid their larger effort to slash the federal workforce and overhaul or abolish federal agencies such as the U.S. Agency for International Development. Trump and Musk have faced waves of lawsuits challenging the firings of government officials, the freezing of most federal spending and more.
Further Reading
Four FEMA Officials Fired After Musk’s DOGE Claims Agency Funded Migrant Housing In ‘Luxury’ Hotels (Forbes)
