New York City to sue Trump administration to get back $80.5M for housing migrants

New York City plans to sue the Trump administration for clawing back $80.5 million in emergency migrant funding that had already been appropriated by Congress and paid into municipal bank accounts, according to a spokeswoman for Mayor Eric Adams.

Details of the lawsuit and the legal theory of the case weren’t disclosed, although the city will initiate the suit by Feb. 21, said the spokeswoman, Liz Garcia.

Garcia provided a copy of a letter sent to City Comptroller Brad Lander confirming the litigation papers are being drafted. It was Lander who noticed the clawback and demanded the litigation. 

The money, which was abruptly withdrawn unilaterally on Tuesday soon after Trump's efficiency czar, Elon Musk, misleadingly claimed the city had spent $59 million on luxury hotels for migrants, is about 40% of the $200 million in emergency-management funds that the city had gotten so far from the feds to deal with the crisis. About $237 million had been allocated by Congress; the $80.5 million was received last week, and a balance of $37 million is left to claim.

The money is related to grants issued for municipalities dealing with sheltering.

Lawsuits are typically handled by the city’s legal department, which reports to Adams, who has said he wouldn’t disagree with Trump in public. Indeed, unlike with past lawsuits of prominence filed by the Adams administration, this one was announced not by Adams' office but only by Lander's. 

Earlier this week, Trump’s Justice Department ordered the criminal prosecution of Adams for corruption to be dismissed, and late Friday, the department filed a motion for dismissal.

By Matthew Chayes

matthew.chayes@newsday.comchayesmatthew

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