



NEW YORK >> The Federal Emergency Management Agency has clawed back more than $80 million from New York City, officials said Wednesday, escalating a dispute between the Trump administration and the nation’s largest city over money for sheltering migrants.
The move came as a federal judge said he wouldn’t stop FEMA from reclaiming the funds.
Gone is a $59 million grant that the administration challenged earlier in the week and another award for $21.5 million, City Comptroller Brad Lander said. The money was discovered to be missing overnight, and Lander said no one in his office had been aware that the federal government had access to the city’s bank account.
Mayor Eric Adams, a Democrat, said city officials had contacted the White House about getting back the money, are seeking an emergency meeting with FEMA and exploring legal options. Adams said he would discuss the matter with President Donald Trump’s border czar, Tom Homan, when they meet in New York on Thursday.
It’s the first big test for Adams’ relationship with Trump’s team after the U.S. Justice Department on Monday directed federal prosecutors in Manhattan to drop corruption charges against the mayor, with a top official saying the administration wanted Adams free to aid the Republican president’s immigration agenda.
The grants were applied for and awarded during the administration of Democratic President Joe Biden but were not disbursed until last week, the city said.
Soon after, Trump adviser Elon Musk flagged $59 million in payments, writing on X that his so-called Department of Government Efficiency had discovered the money was used to house migrants in “luxury hotels.” Musk gave no evidence to support his claim.
In the last two years, New York City has leased several budget hotels and other vacant buildings, turning them into migrant shelters.