New York City €80 Million in Migrant Funds Seized by Federal Government

NEW YORK CITY – New York City Comptroller Brad Lander described the federal government’s recent seizure of $80 million in migrant aid funds as “highway robbery” during a press conference on Wednesday. The funds, which were previously approved by Congress to assist the city in housing migrants, were abruptly withdrawn, leading to significant controversy and accusations against federal officials.

Lander revealed that his office discovered the missing funds, which had been purportedly allocated to the city last week, had been wiped from its bank account. “Today… my @NYCComptroller office discovered that $80 MILLION in already authorized, allocated, and paid federal aid was WIPED from the City’s bank account,” he tweeted Wednesday. “Let’s be crystal clear: This is highway robbery. Elon Musk, with no legal authority, illegally seized federal funds from New Yorkers,” he added.

The funds were intended to reimburse New York City for costs incurred while housing migrants, and Lander’s accusations imply a legal gray area in the actions taken by federal authorities.

The withdrawal follows comments from Kristi Noem, the Secretary of Homeland Security, who stated that the funds were “clawed back” due to concerns about how the money was being used. Noem claimed the funds were improperly distributed to luxury hotels to house migrants, an assertion that was countered by city officials who insisted that the money was authorized for legitimate housing options.

New York City Mayor Eric Adams expressed disappointment over the clawback, stating, “This morning, our office learned about the federal government clawing back more than $80 million in FEMA grants applied for and awarded under the last administration, but not disbursed until last week.” Adams indicated that the city would explore legal avenues to recover the lost funds, confirming that discussions had already begun with the White House and other federal entities.

Lander’s comments came amid his campaign for mayor and reflect a growing concern about the impact of federal funding on local governance. He called on Mayor Adams to pursue legal action, stating that, “New York City cannot take this lying down.” Lander emphasized the need for decisive action to recover what he described as “tens of millions of dollars stolen by Trump and DOGE.”

Following the controversy, Trump defended the decision to claw back the funds, labeling it an essential measure against what he termed as fraud related to taxpayer money. In a statement, he claimed, “This is a massive fraud that’s taking place,” and accused local officials of misusing the funds.

The total clawback includes separate grants amounting to $58.6 million and $21.9 million, which were part of a broader $650 million program funded by Congress under the Biden administration. This funding was aimed at assisting local governments like New York City in managing the financial burdens resulting from the ongoing migrant crisis, which city officials estimate has cost around $7 billion to date.

Amid these developments, the tension between local and federal authorities appears to be escalating. Adams stated city attorneys are reviewing various litigation options while the mayor is set to meet with federal officials soon to address the clawback and negotiate potential recovery of the funds.

This incident highlights the complexities and pressures surrounding the migration situation in New York City, as local leaders navigate both public demands and federal policies that impact resources available for addressing the needs of migrants.