‘Highway robbery’: New York City responds to FEMA funds confiscation by Trump administration
The Trump administration asserted that the $80 million in funding was being misallocated for housing migrants in “luxury hotels,” leading to the decision to recover the funds.
TroibNews 
Top officials in New York City are responding forcefully to the Federal Emergency Management Agency's seizure of $80 million in funding. City Comptroller and mayoral candidate Brad Lander condemned the revocation as “illegal.”
“President Trump and his crony Elon Musk illegally executed a revocation of $80 million in congressionally-appropriated FEMA funding from New York City’s bank accounts,” Lander stated. “This highway robbery of our funds directly out of our bank account is a betrayal of everyone who calls New York City home.”
Lander issued his remarks shortly after the Trump administration accused the city of misusing disaster relief funds intended for housing migrants in luxury hotels. Elon Musk remarked that his Department of Government Efficiency “discovered” the funding on Monday, labeling it “a gross insubordination to the President’s executive order.”
The funds in question were managed by FEMA, under the Department of Homeland Security. A report by Lander's office in 2024 indicated that the city paid an average of $156 per night for hotel accommodations booked through a partnership with the Hotel Association of New York City.
The removal of these funds may lead to reductions in city services.
“We can't recover money we already spent on shelter and services for asylum seekers, so it would require cutting $80 million of some other city expenses,” Lander explained.
FEMA had paused the payments, which had been allocated by Congress during former President Joe Biden's administration for housing migrants. Following the funding controversy, four FEMA employees, including the agency's chief financial officer, were dismissed on Tuesday.
Department of Homeland Security Secretary Kristi Noem confirmed the funding cut on Wednesday, stating that FEMA was “funding the Roosevelt Hotel that serves as a Tren de Aragua base of operations,” referencing the Venezuelan gang tied to Trump’s deportation strategies. An additional $37 million that had been awarded but not yet invoiced by the city has also been placed on hold, as noted by Lander.
The White House has not provided an immediate response to requests for comment.
Lander expressed concern about the government’s ability to withdraw the funds, calling it “terrifying” that the government has such access to seize funds, but could not specify which bank held the money.
He criticized Mayor Eric Adams for not opposing Trump more forcefully, saying, “If instead Mayor Adams continues to be President Trump’s pawn, my Office will request to work in partnership with the New York City Law Department to pursue aggressive legal action.”
In response, Adams stated on Wednesday that he is negotiating with the White House to recover the funds and has requested an emergency meeting with FEMA to address the issue. “The Corporation Counsel is already exploring various litigation options,” he mentioned in a statement on X.
Adams is set to meet with Trump’s border czar Tom Homan on Thursday, who has insisted on cooperation from the Democrat, stating during a radio interview, “Either he comes to the table or we go around him.”
Ahead of this meeting—likely to attract attention from his reelection challengers—Adams' spokesperson Kayla Mamelak Altus pointed out that over 230,000 migrants have arrived in the city “at a cost of nearly $7 billion with little help from the previous administration.”
She noted that Adams will also “discuss going after the violent offenders who are wreaking havoc on our streets” and “will continue to explore all lawful processes to remove violent migrants from our city.”
Sally Goldenberg and Joe Anuta contributed to this report.
Alejandro Jose Martinez for TROIB News
“President Trump and his crony Elon Musk illegally executed a revocation of $80 million in congressionally-appropriated FEMA funding from New York City’s bank accounts,” Lander stated. “This highway robbery of our funds directly out of our bank account is a betrayal of everyone who calls New York City home.”
Lander issued his remarks shortly after the Trump administration accused the city of misusing disaster relief funds intended for housing migrants in luxury hotels. Elon Musk remarked that his Department of Government Efficiency “discovered” the funding on Monday, labeling it “a gross insubordination to the President’s executive order.”
The funds in question were managed by FEMA, under the Department of Homeland Security. A report by Lander's office in 2024 indicated that the city paid an average of $156 per night for hotel accommodations booked through a partnership with the Hotel Association of New York City.
The removal of these funds may lead to reductions in city services.
“We can't recover money we already spent on shelter and services for asylum seekers, so it would require cutting $80 million of some other city expenses,” Lander explained.
FEMA had paused the payments, which had been allocated by Congress during former President Joe Biden's administration for housing migrants. Following the funding controversy, four FEMA employees, including the agency's chief financial officer, were dismissed on Tuesday.
Department of Homeland Security Secretary Kristi Noem confirmed the funding cut on Wednesday, stating that FEMA was “funding the Roosevelt Hotel that serves as a Tren de Aragua base of operations,” referencing the Venezuelan gang tied to Trump’s deportation strategies. An additional $37 million that had been awarded but not yet invoiced by the city has also been placed on hold, as noted by Lander.
The White House has not provided an immediate response to requests for comment.
Lander expressed concern about the government’s ability to withdraw the funds, calling it “terrifying” that the government has such access to seize funds, but could not specify which bank held the money.
He criticized Mayor Eric Adams for not opposing Trump more forcefully, saying, “If instead Mayor Adams continues to be President Trump’s pawn, my Office will request to work in partnership with the New York City Law Department to pursue aggressive legal action.”
In response, Adams stated on Wednesday that he is negotiating with the White House to recover the funds and has requested an emergency meeting with FEMA to address the issue. “The Corporation Counsel is already exploring various litigation options,” he mentioned in a statement on X.
Adams is set to meet with Trump’s border czar Tom Homan on Thursday, who has insisted on cooperation from the Democrat, stating during a radio interview, “Either he comes to the table or we go around him.”
Ahead of this meeting—likely to attract attention from his reelection challengers—Adams' spokesperson Kayla Mamelak Altus pointed out that over 230,000 migrants have arrived in the city “at a cost of nearly $7 billion with little help from the previous administration.”
She noted that Adams will also “discuss going after the violent offenders who are wreaking havoc on our streets” and “will continue to explore all lawful processes to remove violent migrants from our city.”
Sally Goldenberg and Joe Anuta contributed to this report.
Alejandro Jose Martinez for TROIB News
