New York City is taking legal action against the Trump administration after it revoked $80 million in federal funding meant for illegal immigrant shelters. The funds, which were initially earmarked to help accommodate the surge in illegal aliens arriving in the city, were pulled as part of broader efforts by the Trump administration to restrict sanctuary policies that put illegal immigrants before American citizens. Supporters view it as a necessary step to curb what they see as a growing immigration crisis.
According to a letter obtained by the New York Post from the city's law department addressed to city Comptroller Brad Lander, the city planned to take legal action by the end of next week and return the $80.5 million in FEMA payments.
The letter, drafted by Muriel Goode-Trufant, Counsel for the Adams administration, was reportedly addressed to Lander, who is challenging Adams in this summer's Democratic primary for New York City mayor.
“We intend to initiate legal action by February 21, 2025,” the letter read. “The law Department is currently drafting litigation papers with respect to this matter. As the Law Department is representing the City of New York in this matter, there is no need for an authorization for the Comptroller’s Office to engage external legal counsel.”
The letter addressed Lander's request for Adams’ office to either file a lawsuit or permit him to hire his own legal team to sue Trump and Elon Musk’s Department of Government Efficiency (DOGE).
“Given the gravity of the situation, we cannot afford to waste any more time,” Lander said on Friday. “If the Mayor would prefer to spend his days advancing President Trump’s agenda instead of fighting for New Yorkers, then the Law Department must allow me to do so. Recovering these funds is imperative [and that] allowing the Trump administration to proceed without consequence would set a dangerous precedent and make our City a target for the next four years.”
The FEMA payments were withdrawn from the city’s accounts on Tuesday, reportedly without Adams' prior knowledge. The following day, Lander publicly disclosed this, denouncing Trump and Musk for what he described as "highway robbery.” He accused Musk of illegally seizing federal funds from the state’s residents.
In response, Musk stated that DOGE revealed a nearly $60 million FEMA payment for the city’s Shelter and Services Program. Congress allocated $650 million in 2024 to help local governments address the ongoing immigrant crisis. The funds were being used to shelter undocumented immigrants in upscale hotels. Trump later confirmed the payments, stating that “massive fraud” occurred.
This comes just days before Adams vowed to cooperate with Trump’s border czar, Tom Homan’s deportation efforts.
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