FEMA Takes Back Tens Of Millions In Grant Funds For Sheltering Migrants In NYC: 'Highway Robbery'

The Trump administration has revoked $80 million in grants to New York City for housing migrants in shelters, said city Comptroller Brad Lander. Concretely, the Federal Emergency Management Agency (FEMA) made the decision on Tuesday, taking back payments made last week that had been awarded during the Biden administration.

Lander described the action as "highway robbery" and said that, depending on the terms of the city's grant, it could be illegal. City Hall spokesperson Liz Garcia said the Eric Adams administration is exploring litigation options and conducting an internal investigation into the way the events unfolded. Administration officials requested an emergency meeting with the White House to get the funds back.

The retrieval took place after FEMA fired four officials following claims by Elon Musk that the agency had improperly allocated funds to house migrants in "luxury hotels" in New York City.

Acting FEMA Administrator Cameron Hamilton confirmed that payments had been suspended, and DHS stated that those responsible for the transactions would be held accountable.

Musk, who oversees the Department of Government Efficiency (DOGE), alleged on X that FEMA had sent $59 million the previous week for migrant housing. He added that the funds should have been used for disaster relief and claiming that the discovery revealed "gross insubordination to the President's executive order."

DHS confirmed the dismissal of the agency's chief financial officer, two program analysts, and a grant specialist through a statement on its website that emphasized that "under President Trump and Secretary Noem's leadership, DHS will not sit idly and allow deep state activists to undermine the will and safety of the American people."

Neither Musk nor Hamilton provided details about the specific payments, but the Associated Press reports that they are believed to have been part of the Shelter and Services Program, which reimburses cities and organizations for immigration-related expenses. It was also not clear where the $59 million figure cited by Musk came from.

The New York City Mayor's Office disputed Musk's characterization of the payments, clarifying that $81 million in federal reimbursements received last week covered expenses from November 2023 to October 2024, including hotel, security, food, and other costs.

City Hall spokeswoman Liz Garcia told The Associated Press, these funds were appropriated by Congress and allocated last year by FEMA. She also stated that New York City has never paid "luxury rates," with the average cost per night being $152, far below the rates of five-star hotels in Manhattan.