Federal government withdraws $80 million in FEMA grant from NYC
Two days after DOJ learned of plans to stop criminal cases against him, Mayor Adams is already facing a dispute with the federal government. They have revoked the $80 million FEMA grant awarded to the city to house immigrants. Reported by Morgan McKay of FOX 5 NY.
new york – The Federal Emergency Management Agency (FEMA) has revoked more than $80 million in funding from New York City for the handling of immigrants.
City Secretary Bradlander said the money went missing overnight, and his office didn’t know that the federal government could access the city’s bank account.
The FEMA representative administrator said in court documents filed Tuesday that concerns about “illegal activities” at the hotel were costing money.
What they are saying:
Elon Musk, head of the Government Efficiency Agency (DOGE), says FEMA illegally spent millions on housing immigrants in luxury hotels in New York City. He claims the money was intended to help the US disaster relief, but was misused on high-end accommodations. Musk provided no evidence to support his claim.
While city officials are clearly exploring legal options for an emergency meeting with FEMA, Adams plans to meet Trump’s border emperor Tom Homan in New York on Thursday. It is still unknown regarding FEMA funding.
Is this legal?
What we know:
Lander questioned the legality of the move, saying he had never seen a case where he “can take money from your bank account to change the political wind.”
However, a federal judge ruled Wednesday that the administration could continue to withhold FEMA funds from the city. US District Judge John McConnell said the funds were not subject to a court order preventing federal funding suspension.
Where did the funds come from?
Mayor Adams seeks more funding for the immigration crisis
New York City Mayor Eric Adams traveled to Albany on Tuesday and asked state legislators to help cover the costs of New York City’s ongoing immigration crisis. Morgan McKay in Fox 5 has a story.
City officials say the stolen grants were applied and awarded during the Biden administration, but were not paid until last week.
Fact check:
Claim:
Critics allege that FEMA sent $59 million to a luxury hotel in New York City last week to house illegal immigrants.Some Republicans also claim that the city’s immigration fund is robbing money from disaster relief for those suffering from hurricanes and floods.
fact:
FEMA does not transfer money directly to hotels in New York. It manages funds on behalf of the US Customs and Border Protection Program under the Shelter and Services Program, which was approved by Congress in 2023.The Shelter and Services Program is separate from FEMA’s Disaster Relief Fund and has its own line items in the federal budget.
According to city spokesman Liz Garcia, the $59 million covers refunds for services offered between November 2023 and October 2024. The other $19 million was the cost of the hotel.
Garcia says the city has never paid a luxurious fee for the hotel.
Did the immigrants live in luxury hotels?
The Roosevelt Hotel is the modern day Ellis Island
It was exactly a year ago that the Roosevelt Hotel became a New York City Intake Senner for the newly arrived immigrants. Since then, thousands of HAEs have passed through over 100 different countries. Morgan McKay of Fox 5 NY saw their operations internally.
Local perspective:
Most of the former hotels rented by the city are occupied by families with children. Nothing is considered “luxury” by most traveller standards.
This is supported by a report from mayor Brad Lander last year. Brad Lander is currently running for mayor.
Some of the Manhattan rooms cost around $200 per night, but that’s not a luxury price.
Prices for 5-star hotels in Manhattan are typically well over $1,000 for $400 a night.
Roosevelt Hotel
In 2023, the city began leasing the former Roosevelt Hotel as an intake centre for immigrants after it was closed in 2020 due to the Covid-19 pandemic.
It was once a historic hotel, but it was an affordable option for travelers before its closure.
NYC Sanctuary City Status
Dive deeper:
New York City is a “sanctuary city” with laws restricting cooperation with federal immigration enforcement, but these laws do not prevent deportation.
Urban law requires shelters to be provided to those in need, and the usual homeless shelter system was overwhelmed by the new arrivals and former hotels were reused. It now serves both as an intake center for immigrants applying for services and as a temporary shelter for hundreds of families who can stay for up to 60 days.
NYC immigrants
