Trump White House plucks $80 million from New York City bank accounts

The Department of Homeland Security (DHS) surreptitiously revoked $80 million in federal funds from New York City on Feb. 12. City officials were not notified until after they discovered the shortfall in city bank accounts.

DHS Secretary Kristi Noem said in a Feb. 13 social media post that the money had been taken to punish the city for misusing FEMA funds to house undocumented migrants at the Roosevelt Hotel.

“I have clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels,” Noem wrote. “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.”

But Noem’s claims are not completely accurate. The city received $80 million in late January as a part of the Shelter and Services Program, a congressionally-created grant that reimburses localities for providing migrant aid. While the program is administered through FEMA, the funds come from a separate part of the federal budget.

Under the Shelter and Services Program, New York City provided approved services to migrants and received $80 million from the federal government to cover the costs.

New York City Comptroller Brad Lander told MSNBC’s Chris Hayes that he was befuddled by Noem’s actions.

“They gave us this money and Congress authorized it,” Lander said. “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 is apparently the first time the Trump administration has taken back federal money that was already disbursed. The payment was technically in a probationary status, but Lander said revoking the payment was “unprecedented.”

Noem’s claims about the Roosevelt Hotel are also dubious. Republicans, including President Donald Trump, have consistently mischaracterized the city’s use of the hotel for migrant shelter as an example of “illegals” receiving “luxury accommodations.” The 100-year old hotel, however, closed in 2020 and reopened in 2023 for the explicit purpose of connecting migrants with case workers, basic medical care, and temporary housing.

New York City has become a target for the Trump administration in recent weeks. The White House has been accused of pressuring federal prosecutors to drop criminal charges against Mayor Eric Adams in exchange for Adams cooperation with mass deportations. Both Adams and the White House deny these allegations.

The Adams administration filed a lawsuit against the government over the revoked funds on Feb. 15. Landers is challenging Adams in the 2025 New York City mayoral election.