New York City to sue Trump admin over revoked $80M in FEMA migrant shelter funding for New York City

New York City plans to file a lawsuit against the Trump administration after the federal government pulled more than $80 million in funding for illegal immigrant shelters, but it appears the city’s lawyers could be acting without Mayor Eric Adams’ blessing.

The city’s law department sent a letter Friday to city Comptroller Brad Lander saying that it planned to take legal action by the end of next week to have the $80.5 million in FEMA payments taken earlier this week returned, according to the New York Post. Lander is running against Adams in June’s Democratic Party primary election for the city’s mayor. Adams, meanwhile, has shown a willingness to work with the Trump administration, which has dropped a criminal case against him.

“The Law Department is currently drafting litigation papers with respect to this matter,” corporation counsel Mureil Goode-Trufant told Lander in a letter, the outlet reported.

“We intend to initiate legal action by February 21, 2025. As the Law Department is representing the City of New York in this matter, there is no need for an authorization for the Comptroller’s Office to engage external legal counsel,” the letter reads.

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The letter came after Lander urged the Adams administration to either file a lawsuit or authorize him to hire his own attorneys to sue Trump and Elon Musk, who leads the Department of Government Efficiency.

“Given the gravity of the situation, we cannot afford to waste any more time. If the Mayor would prefer to spend his days advancing President Trump’s agenda instead of fighting for New Yorkers, then the Law Department must allow me to do so,” Lander said in a statement Friday.

“Recovering these funds is imperative, and any action, or non-action, allowing the Trump administration to proceed without consequence would set a dangerous precedent and make our City a target for the next four years,” he added.

The revocation of FEMA funds from New York City’s accounts happened Tuesday and was first discovered by Lander the following day.

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“Let’s be crystal clear: This is highway robbery. Elon Musk, with no legal authority, illegally seized federal funds from New Yorkers,” Lander said Wednesday.

Musk claimed that DOGE found a $59 million FEMA payment to New York City was being used on luxury hotels to house illegal migrants. Trump later repeated Musk’s claim and argued that “massive fraud” was happening.

New York City was awarded two separate grants during the Biden administration — one for $58.6 million and another for $21.9 million — as the city attempted to pay to house migrants, many of whom were sent by Texas officials who were frustrated with the Biden administration’s handling of the influx of migrants entering the U.S. through the Southern Border.

The payments were made under the Shelter and Services Program that Congress appropriated $650 million for last year to help local governments respond to the migrant crisis.

The FEMA money, which was funded by U.S. Customs and Border Protection, paid $12.50 a night reimbursement for each hotel room. The city said most of the hotels used to house migrants are not luxurious. The remainder of the funds went toward security, food and other services for migrants.

This came after the Department of Justice ordered prosecutors to drop their federal corruption case against Adams, who had been indicted on charges of fraud, bribery and soliciting campaign contributions from foreigners. Some have raised concerns that Adams may be beholden to the president because his case was dropped.