Eric Adams Files Lawsuit Against Trump for Unaccounted $80M
In an unexpected decision, federal officials revoked funds that had been authorized by Congress for immigrant services.
TroibNews 
NEW YORK — On Friday, New York City Mayor Eric Adams initiated a lawsuit against President Donald Trump and several individuals in his administration over the unauthorized removal of $80 million from a city bank account. This action followed a threat from Elon Musk on X regarding the funds’ withdrawal.
The unexpected clawback earlier this month perplexed local officials and raised concerns that the Trump administration could significantly disrupt the city’s financial resources, particularly given that New York City operates with a $115 billion budget.
This lawsuit represents a notable departure from Adams' previous reluctance to publicly challenge the Republican-led White House. The mayor has generally sought Trump’s assistance in his ongoing federal corruption case, which Trump's Justice Department has sought to dismiss. This situation has generated calls for Adams’ removal and has led to the resignation of several top aides. Additionally, Governor Kathy Hochul has proposed legislative measures to establish boundaries around his authority.
In the lawsuit, the city alleges that Trump’s team breached federal laws and grant agreements when they reversed the transfer of $80.5 million that had already been deposited into a City Hall bank account. The funds, approved by Congress, were designated for immigrant services.
“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,” New York City Mayor Eric Adams stated. “With very little help from the federal government, our administration has skillfully managed an unprecedented crisis.”
City attorneys are petitioning for the return of the funds and for the Trump administration to be prohibited from any similar future seizures.
“Defendants have acted lawlessly, but have attempted, after the fact, to mask this fact with a semblance of following procedure,” city Corporation Counsel Muriel Goode-Trufant asserted in the federal court complaint.
Goode-Trufant contends that federal officials lacked justification for reclaiming the funds by citing a provision in federal banking laws. The financial support was part of the Shelter and Services Program administered by the Department of Homeland Security.
“The statements could not be clearer: Defendants' purpose for grabbing back the funds was not related to the City's specific expenditures at all, but to thwart the very purpose of the SSP,” Goode-Trufant maintained.
She further claimed that DHS and FEMA withdrew the funds without adhering to proper federal legal procedures, subsequently sending the city a letter expressing concerns that the money would be used for illegal activities—without providing specific examples—after the funds had been seized.
“The letter is meant to look like it affords the requisite administrative process when, in fact, the decision has already been made to deny payment to the City because Defendants do not want to pay the City for providing the very services to the very people for the very purposes that Congress appropriated the funds and FEMA awarded the grants and approved and made the payments,” Goode-Trufant elaborated.
The city also accused Trump officials of misrepresenting their intentions in a separate case regarding the federal government’s authority to freeze funds designated for states.
DHS and FEMA did not immediately provide a comment on the situation.
The controversy erupted at 5 a.m. on February 10, when Elon Musk posted on X that DOGE had discovered $57 million allocated by FEMA for “luxury hotels in New York City to house illegal migrants. Sending this money violated the law and is in gross insubordination to the President’s executive order.” He further claimed the funding was intended for disaster relief for Americans.
While FEMA disbursed the funds, they originated from a DHS program designed to reimburse state and local governments for services provided to non-citizen immigrants, which meant they were unrelated to disaster relief. Instead of funding luxury hotels, the funds were utilized to cover a FEMA-approved per-person rate for lodging, specifically at the Roosevelt Hotel in Midtown Manhattan.
Homeland Security Secretary Kristi Noem had stated that the Roosevelt was being used as a base for the Venezuelan gang Tren de Aragua. The NYPD has reported that this gang has been recruiting members from city shelters and that some affiliated individuals have stayed at the Roosevelt.
Despite Musk’s misrepresentation of the payment, the Trump administration subsequently dismissed four FEMA officials responsible for managing the transfer.
The day following Musk’s post, city officials reported discovering $80 million missing from their bank account, along with a $15,000 overdraft fee, which City Hall stated has since been cancelled.
According to the lawsuit filed on Friday, the money had been transferred to the city account on February 4.
Jeff Coltin contributed to this report.
Max Fischer contributed to this report for TROIB News
The unexpected clawback earlier this month perplexed local officials and raised concerns that the Trump administration could significantly disrupt the city’s financial resources, particularly given that New York City operates with a $115 billion budget.
This lawsuit represents a notable departure from Adams' previous reluctance to publicly challenge the Republican-led White House. The mayor has generally sought Trump’s assistance in his ongoing federal corruption case, which Trump's Justice Department has sought to dismiss. This situation has generated calls for Adams’ removal and has led to the resignation of several top aides. Additionally, Governor Kathy Hochul has proposed legislative measures to establish boundaries around his authority.
In the lawsuit, the city alleges that Trump’s team breached federal laws and grant agreements when they reversed the transfer of $80.5 million that had already been deposited into a City Hall bank account. The funds, approved by Congress, were designated for immigrant services.
“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,” New York City Mayor Eric Adams stated. “With very little help from the federal government, our administration has skillfully managed an unprecedented crisis.”
City attorneys are petitioning for the return of the funds and for the Trump administration to be prohibited from any similar future seizures.
“Defendants have acted lawlessly, but have attempted, after the fact, to mask this fact with a semblance of following procedure,” city Corporation Counsel Muriel Goode-Trufant asserted in the federal court complaint.
Goode-Trufant contends that federal officials lacked justification for reclaiming the funds by citing a provision in federal banking laws. The financial support was part of the Shelter and Services Program administered by the Department of Homeland Security.
“The statements could not be clearer: Defendants' purpose for grabbing back the funds was not related to the City's specific expenditures at all, but to thwart the very purpose of the SSP,” Goode-Trufant maintained.
She further claimed that DHS and FEMA withdrew the funds without adhering to proper federal legal procedures, subsequently sending the city a letter expressing concerns that the money would be used for illegal activities—without providing specific examples—after the funds had been seized.
“The letter is meant to look like it affords the requisite administrative process when, in fact, the decision has already been made to deny payment to the City because Defendants do not want to pay the City for providing the very services to the very people for the very purposes that Congress appropriated the funds and FEMA awarded the grants and approved and made the payments,” Goode-Trufant elaborated.
The city also accused Trump officials of misrepresenting their intentions in a separate case regarding the federal government’s authority to freeze funds designated for states.
DHS and FEMA did not immediately provide a comment on the situation.
The controversy erupted at 5 a.m. on February 10, when Elon Musk posted on X that DOGE had discovered $57 million allocated by FEMA for “luxury hotels in New York City to house illegal migrants. Sending this money violated the law and is in gross insubordination to the President’s executive order.” He further claimed the funding was intended for disaster relief for Americans.
While FEMA disbursed the funds, they originated from a DHS program designed to reimburse state and local governments for services provided to non-citizen immigrants, which meant they were unrelated to disaster relief. Instead of funding luxury hotels, the funds were utilized to cover a FEMA-approved per-person rate for lodging, specifically at the Roosevelt Hotel in Midtown Manhattan.
Homeland Security Secretary Kristi Noem had stated that the Roosevelt was being used as a base for the Venezuelan gang Tren de Aragua. The NYPD has reported that this gang has been recruiting members from city shelters and that some affiliated individuals have stayed at the Roosevelt.
Despite Musk’s misrepresentation of the payment, the Trump administration subsequently dismissed four FEMA officials responsible for managing the transfer.
The day following Musk’s post, city officials reported discovering $80 million missing from their bank account, along with a $15,000 overdraft fee, which City Hall stated has since been cancelled.
According to the lawsuit filed on Friday, the money had been transferred to the city account on February 4.
Jeff Coltin contributed to this report.
Max Fischer contributed to this report for TROIB News
