Feds cut $80M FEMA grant to NYC over allegations of luxury housing for migrants
Feds pull $80M FEMA grant from NYC
Jut two days after learning the DOJ plans to drop the criminal case against him, Mayor Adams is already facing some conflict with the federal government. They are revoking $80 million in FEMA grants that had been awarded to the city to house migrants. FOX 5 NY's Morgan McKay reports.
NEW YORK - The Federal Emergency Management Agency (FEMA) revoked more than $80 million in funding from New York City over it's handling of migrants.
City Comptroller Brad Lander says the money went missing overnight, and his office was unaware the federal government had access to the city’s bank account.
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NYC moves to sue Trump administration over FEMA funding
New York City plans to sue the Trump administration over $80M in FEMA funds. Comptroller Brad Lander urged the Adams administration to file a lawsuit or let him hire his own attorneys.
FEMA’s acting administrator said in court documents filed Tuesday that the money was being clawed back over concerns about "illegal activities" at a hotel.
What they're saying:
Elon Musk, head of the Department of Government Efficiency (DOGE), says FEMA spent millions illegally to house migrants in luxury hotels in New York City. He claims the money was intended for disaster relief in the U.S. but was wrongly used for high-end accommodations. Musk provided no evidence to back up his claim.
City officials are apparently seeking an emergency meeting with FEMA and exploring legal options, while Adams plans to meet with Trump's border czar, Tom Homan, in New York on Thursday. It's still unclear if it will be with regards to FEMA funding.
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Here's how much it costs NYC to care for a single migrant
The per diem rate for a single migrant household is more than previously expected. These costs add up quickly when considering the nearly 64,000 asylum seekers in the city's care.
Is this legal?
What we know:
Lander questioned the legality of the move, saying he had never seen a case where someone could "take money from your bank account because of shifting political winds."
However, a federal judge ruled Wednesday that the administration can continue withholding FEMA funds from the city. U.S. District Judge John McConnell said the money is not subject to a court order preventing a pause on federal funding.
Where did the funding come from?
Mayor Adams seeks more funds for migrant crisis
New York City Mayor Eric Adams traveled to Albany on Tuesday to ask state lawmakers for $1 billion to help cover the costs of the ongoing migrant crisis in New York City. FOX 5's Morgan McKay has the story.
The grants that were snatched were applied for and awarded during the Biden administration, but were not disbursed until last week, according to city officials.
FACT CHECK:
Claims:
- Critics claim FEMA sent $59 million last week to luxury hotels in New York City to house illegal migrants.
- Some Republicans also argue that the city’s migrant funds are taking money away from disaster relief for people hit by hurricanes or floods.
Facts:
- FEMA does not send money directly to New York hotels. It administers funds on behalf of U.S. Customs and Border Protection under the Shelter and Services Program, authorized by Congress in 2023.
- The Shelter and Services Program is separate from FEMA’s Disaster Relief Fund and has its own line item in the federal budget.
According to city spokesperson Liz Garcia, the $59 million covers reimbursements for services provided between November 2023 and October 2024, including costs for hotels, security, food, and more. The other $19 million was for hotel expenses.
Garcia says that the city has never paid luxury rates for hotels.
Were migrants living in luxury hotels?
Roosevelt Hotel becomes modern-day Ellis Island
It was just over a year ago when the Roosevelt Hotel became New York City's intake cener for newly-arriving migrants. Since then, thousands hae passed through from over 100 different nations. FOX 5 NY's Morgan McKay got an inside look at their operations.
Local perspective:
Most of the former hotels leased by the city are occupied by families with children. None would be considered "luxury" by most traveler standards.
This is backed up by a report last year from City Comptroller Brad Lander, who is now running for mayor in a bid to unseat Adams, which showed that the municipal government has paid on average $152 a night for rooms, the vast majority outside Manhattan.
Some of the Manhattan rooms were around $200 per night, but that's not a luxury rate.
Rates for five-star hotels in Manhattan typically go for $400 a night to well over $1,000.
The Roosevelt Hotel
In 2023, the city began leasing the former Roosevelt Hotel as an intake center for migrants after it closed in 2020 due to the COVID-19 pandemic.
Once a historic hotel, it had been an affordable option for travelers before its closure.
NYC Sanctuary City status
Dig deeper:
According to the city's Immigrant Affairs office, New York City is a "sanctuary city" with laws that limit cooperation with federal immigration enforcement, but these laws do not prevent deportations.
City law mandates that shelter be provided to anyone in need, and with the regular homeless shelter system overwhelmed by new arrivals, the former hotel was repurposed. It now serves as both an intake center for migrants applying for services and a temporary shelter for hundreds of families, who can stay for up to 60 days.