Mayor Adams and New York Metropolis on Friday sued President Trump and the federal authorities over the “lawless money grab” of $80 million from a metropolis checking account earlier this month.
The swimsuit, filed in Manhattan federal court docket, accuses the Trump administration of violating federal regulation by seizing again the grant cash, and it argues that the feds should give the funds again and be blocked from dipping their fingers into the town’s pockets once more.
“The $80 million that FEMA approved, paid and then rescinded — after the city spent more than $7 billion in the last three years — is the bare minimum our taxpayers deserve,” Adams stated in an announcement. “And that’s why we’re going to work to ensure our city’s residents get every dollar they are owed.”
The Trump administration revoked from the town the $80.5 million cost, which was congressionally appropriated and issued by the Federal Emergency Administration Company’s Shelter and Companies Program on Feb. 11, in line with the swimsuit.
That take-back got here after Elon Musk beforehand threatened to claw again funds that he falsely claimed the town had spent on housing migrants in “luxury hotels.”
The feds accomplished the “lawless money grab with a veneer of administrative process” after which tried to “mask” that with court docket filings searching for the flexibility to withhold FEMA funds, Muriel Goode-Trufant, the town’s prime lawyer, wrote within the criticism.
The federal authorities additionally despatched the town a “noncompliance” letter that didn’t particularly tackle any guidelines damaged by the town, however as an alternative relied on unsupported claims that the Roosevelt Resort, certainly one of many metropolis migrant shelters that receives federal funding, was overwhelmed with crime and gang exercise, in line with the swimsuit.
The town is searching for orders that may power the feds to offer the funds again, cease them from taking extra grant cash from metropolis financial institution accounts and forestall them withholding future FEMA funds.
The grant cash was disbursed via an Automated Clearing Home, or ACH, switch, the standard means authorities businesses electronically transfer cash, in line with the swimsuit.
Metropolis Corridor says it has spent round $7 billion in whole on migrant providers.
The funding drama has performed out because the mayor has come beneath hearth over the Trump Justice Division’s order to dismiss his federal corruption case. Appearing Deputy Lawyer Basic Emil Bove wrote in his movement that Adams wanted to be relieved of the case with a purpose to higher assist perform the president’s agenda in New York Metropolis.
Adams has been accused of taking a corrupt quid professional quo deal to assist Trump in alternate for authorized assist — a declare the mayor denies.
This swimsuit is the primary authorized battle between New York Metropolis and Trump.
The White Home and the Division of Homeland Safety, which oversees FEMA, didn’t instantly reply to requests for remark.
Metropolis Comptroller Brad Lander, who’s operating for mayor, whose workplace first discovered the clawback, took credit score for the lawsuit in an announcement.
“After my office discovered that Elon Musk and his DOGE goon squad stole $80 million out of the city’s coffers, we successfully pressured Mayor Adams to allow the city’s lawyers to sue the federal government to get our money back,” Lander stated. “The lawyers who are standing up to President Trump and Eric Adams’ collusion deserve praise and we look forward to Donald Trump returning the money he stole from New York.”
Adams stated final week the town was contemplating taking authorized motion and that his workforce had reached out to the White Home to clarify that the town wanted the funds as a result of President Biden’s administration “left us with a huge price tag” regarding the migrant disaster.
Final week, the Division of Homeland Safety additionally fired 4 FEMA workers “for circumventing leadership to unilaterally make egregious payments” to New York, in line with a DHS assertion.
Elon Musk publicly credited his Division of Authorities Effectivity with discovering the disbursement, however neither Musk nor DOGE are named within the lawsuit. A spokesperson for the mayor stated this was as a result of it was not clear to the town whether or not DOGE was included within the decision-making, however that “John Doe” and “U.S. Department or Agency” have been included within the swimsuit as doable placeholder plaintiffs.
Secretary of Homeland Safety Kristi Noem claimed accountability for the funding reversal a day after it was full, writing on social media that she had “clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels.”
Initially Revealed: February 21, 2025 at 7:19 PM EST
