
New York City’s Mayor Eric Adams is poised to initiate legal proceedings against the Trump administration next week after reports surfaced that more than $80 million in migrant funding was covertly reclaimed from the city’s financial resources. This information comes from a letter reviewed by The Post.
The Adams administration’s legal team formally notified City Comptroller Brad Lander on Friday, indicating plans to file a lawsuit by February 21 to recover the $80.5 million in Federal Emergency Management Agency (FEMA) funds that were retracted by federal authorities earlier this week.
“The Law Department is in the process of drafting legal documentation regarding this issue,” stated the letter written by Corporation Counsel Mureil Goode-Trufant.
“We are set to commence legal action by February 21, 2025. The Law Department will represent New York City in this case, which means there is no requirement for the Comptroller’s Office to seek outside legal counsel,” the letter continued.
This correspondence was sent shortly after Lander urged the Adams administration to either proceed with filing a lawsuit or permit him to hire his own attorneys to pursue action against Trump and Elon Musk, the chief of the Department of Government Efficiency.
“Considering the serious nature of the situation, we cannot afford any further delays,” stated Lander, who is challenging Adams in the upcoming June Democratic mayoral primary, in a press release on Friday.
“If the Mayor chooses to focus his efforts on promoting President Trump’s agenda rather than advocating for New Yorkers, then the Law Department should allow me to move forward independently.”
The abrupt withdrawal of FEMA funds from New York City occurred on Tuesday, unbeknownst to Adams, and was brought to light the following morning by Lander, who accused Trump and Musk of “highway robbery.”
Musk recently asserted that his agency identified a $59 million FEMA payment intended for New York City that he claimed was being misused for “luxury hotels” accommodating undocumented migrants.
Trump later echoed Musk’s claims, suggesting that there was significant fraud occurring.
New York City had sought and received two separate grants totaling $58.6 million and $21.9 million under the Biden administration to help alleviate costs incurred from sheltering migrants coming across the U.S.-Mexico border, according to both city and federal officials.
City officials countered Musk’s assertion, clarifying that only $19 million would be allocated to reimburse past expenditures for housing migrants in hotels, funds that were indeed sanctioned by Congress.
The reimbursements were part of the Shelter and Services Program, for which Congress allocated $650 million in 2024 to assist local governments, including New York City, in managing the financial burden stemming from the migrant crisis, which has now reached an estimated $7 billion.
According to city officials, the FEMA funds, channeled through U.S. Customs and Border Protection, provided a $12.50 per night reimbursement for each hotel room used to accommodate migrants. They noted that the majority of the approximately 150 hotels utilized were not luxury establishments.
Remaining funds would cover security, food, and other vital services for migrants.
Until Friday, it was uncertain whether Adams would take the necessary steps to pursue legal action against Trump.
The Department of Justice had directed prosecutors to dismiss the federal corruption charges against the mayor, a move that had raised concerns among Adams’ allies who believed it could leave him as a “hostage” to the incoming administration.