DHS Revokes $80 Million from New York City Without Prior Notification
New York City recently discovered an unexpected shortfall of $80 million in its bank accounts after the Department of Homeland Security (DHS) withdrew federal funds on February 12. The city was only made aware of the withdrawal after noticing the missing funds.
In a social media post dated February 13, DHS Secretary Kristi Noem claimed the money was retracted as a penalty for the city’s alleged misuse of FEMA funds to house undocumented migrants at the Roosevelt Hotel. She stated, “I have clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels.” Noem further alleged that the hotel was associated with criminal activity, including housing the individual involved in the killing of Laken Riley.
However, scrutiny of Noem’s statements reveals inconsistencies. The $80 million was provided in late January under the Shelter and Services Program. This program is designed to reimburse localities for the aid given to migrants and is funded from a separate federal budget, despite being administered through FEMA. New York City utilized these funds to offer approved services to migrants.
New York City Comptroller Brad Lander expressed bewilderment over the federal action during an interview with MSNBC’s Chris Hayes. Lander emphasized, “They gave us this money and Congress authorized it. We sent them an invoice detailing all the expenses … they sent us the money and approved the invoice. But lo and behold, they yanked it right back. It is highway robbery.”
This marks the first instance under the Trump administration where disbursed federal funds have been retracted, despite the payment being in probationary status. Lander highlighted that withdrawing the funds was “unprecedented.”
Noem’s assertions regarding the Roosevelt Hotel have also been disputed. Since 2020, Republicans, including President Donald Trump, have criticized the city’s use of the hotel as a migrant shelter, labeling it as providing “luxury accommodations” to “illegals.” Contrary to these claims, the hotel reopened in 2023 with the aim to assist migrants by providing connections to case workers, basic medical care, and temporary housing.
The Trump administration has intensified its focus on New York City recently. Allegations have surfaced accusing the White House of exerting pressure on federal prosecutors to dismiss criminal charges against Mayor Eric Adams as a quid pro quo for his cooperation with mass deportations. Both Adams and the White House have refuted these claims.
In response to the withdrawal of funds, the Adams administration initiated a legal suit against the federal government on February 15. Comptroller Lander is also challenging Mayor Adams in the upcoming 2025 New York City mayoral election.
