The Federal Emergency Management Agency has rescinded $80 million allocated to New York City for migrant housing, escalating tensions between city officials and the Trump administration as federal agencies move to curb funding for programs tied to illegal immigration, The Hill reported.
New York City officials are pushing back against a federal decision to revoke $80 million in migrant housing funds, a move aligned with the Trump administration's broader efforts to crack down on such programs.
The Federal Emergency Management Agency confirmed Wednesday that it had pulled the funding, citing concerns over potential misuse.
"I have clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels," Secretary of Homeland Security Kristi Noem wrote on X.
The decision is part of a broader federal initiative spearheaded by Elon Musk's Department of Government Efficiency, or DOGE, which has targeted various funding freezes.
Musk has been vocal about his stance on migrant housing grants, stating on X that the funds "violated the law and [were] in gross insubordination to the President's executive order. That money is meant for American disaster relief and instead is being spent on high end hotels for illegals!"
FEMA's concerns about the funds include allegations that they were being used to support illegal activities.
"FEMA was funding the Roosevelt Hotel that serves as a Tren de Aragua base of operations and was used to house Laken Riley's killer. Mark my words: there will not be a single penny spent that goes against the interest and safety of the American people," Noem wrote.
The administration's push to halt various federal grants has led to legal battles.
A judge previously blocked an attempt at an across-the-board pause and ruled that the administration was not complying with the court's order. However, agencies can still limit funding access under certain statutory authorities.
"As of today, the Department has paused funding to the Shelter and Services Program based on significant concerns that the funding is going to entities engaged in or facilitating illegal activities," Cameron Hamilton, who is performing the duties of FEMA administrator, wrote in a sworn declaration.
The administration sought clarification from the judge Tuesday on whether pausing the funding would be allowed, but the judge declined to intervene, stating he "sees no need."
New York City officials, meanwhile, are weighing legal options to challenge the revocation. City Comptroller Brad Lander called the move "illegally executed," arguing that Congress had already appropriated the funds.
