Migrant-crisis clawbacks from NYC rise to nearly $200M from Trump administration; Adams to sue to get money back

The Trump administration is now seeking to claw back even more migrant-crisis reimbursements to New York City, bringing the total to nearly $200 million.

Earlier this year, the Federal Emergency Management Agency, which administers disaster grants, removed from a city bank account $80.5 million in money that had already been allocated by Congress and paid out, and Mayor Eric Adams' administration sued to get the money back. The latest funds to be rescinded total about $106 million.

This week, Adams said the city would sue over the additional cash being taken from the city. 

"They're trying to claw back $200 million. And we are fighting for that $200 million. The corporation counsel has already taken actions for that $200 million. We were very clear. We believe that $200 million belongs to us," Adams said on Tuesday at his weekly news conference at City Hall.

Adams spokeswoman Liz Garcia said the city expected $223 million from the feds.

Adams also blamed former President Joe Biden for saddling the city with $7 billion in costs to handle the migrants. 

A copy of the termination letter, signed by FEMA official Cameron Hamilton and provided by Garcia, said that providing the reimbursements "no longer effectuates the program goals or agency priorities."

He wrote that "grant programs that support, or have the potential to support, illegal immigration through funding illegal activities or support for illegal aliens that is not consistent with DHS's enforcement focus do not effectuate the agency's current priorities."

Hamilton, who is the acting FEMA administrator, last week was given a lie detector test to assess whether he leaked information regarding a private meeting at which drastic agency cuts for disaster relief were discussed, Politico reported. 

Since spring 2022, more than 230,000 foreign migrants have come to New York City, most from Latin America, and the city has expended billions on room and board for them.

Adams, whose criminal corruption case was dismissed by the Trump administration in part so that Adams can assist in Trump’s promised immigration crackdown, has refused to criticize Trump by name, or at all.

A statement emailed Tuesday by FEMA's press office cited spokeswoman Tricia McLaughlin, a Department of Homeland Security assistant secretary, and the department's secretary, Kristi Noem, in defending the cuts.

"Secretary Noem has clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels," the statement said.

In a statement issued by spokeswoman Chloe Chik, City Comptroller Brad Lander said, "Like Elon Musk stealing $80 million directly out of our bank account last month, this is yet another example of federal overreach by President Trump to weaponize the federal budget to harm New York City."

Lander’s office first noticed the initial clawback.

By Matthew Chayes

matthew.chayes@newsday.comchayesmatthew

Matthew Chayes, a Newsday reporter since 2007, covers New York City.