Homeland Security said Wednesday it has recaptured tens of millions of taxpayer dollars it had recently sent to New York City as reimbursement for housing migrants.
The department said it clawed back $59 million, while city officials said the feds took $80 million.
Homeland Security said the payment, made by the Federal Emergency Management Agency, was “unauthorized.” FEMA fired four people involved in the payment, in addition to recouping the money.
“Secretary [Kristi] Noem has clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels,” Homeland Security said in an unsigned statement.
New York’s comptroller, meanwhile, said clawing back the money was illegal.
“This highway robbery of our funds directly out of our bank account is a betrayal of everyone who calls New York City home,” said Comptroller Brad Lander.
The payments have quickly become a symbolic fight in the battle over illegal immigration.
Elon Musk, head of President Trump’s Department of Government Efficiency, highlighted the money in a recent social media post, saying his analysts had discovered the $59 million disbursement.
“Sending this money violated the law and is in gross insubordination to the president’s executive order,” Mr. Musk wrote on social media.
The money in question appears to be the city’s portion of the Shelter and Service program. The program, which got $650 million from Congress in 2024, reimburses states and localities for expenses they incurred taking care of migrants.
As of September, New York City had been approved for three installments of $38.9 million, $22.2 million and $20.4 million.
Other big winners included San Diego, where the county got $19.6 million, the local Catholic Charities branch got $41.2 million and Jewish Family Service San Diego got $22.1 million.
FEMA said it “suspended” the payments earlier this week.
Mr. Lander, New York’s comptroller, told local news reporters the money just disappeared from their systems. He said he’d never seen that happen before, The New York Daily News reported.
Mr. Lander urged Mayor Eric Adams to take legal action to demand the money back.
He said if Mr. Adams doesn’t act, he will pursue the case himself.
“New York City cannot take this lying down,” Mr. Lander said.
At least some of the money was used to house migrants at the Roosevelt Hotel, a four-star accommodation in midtown Manhattan.
Homeland Security said the hotel has been a base of operations for Tren de Aragua, the notorious Venezuelan gang that infiltrated the U.S. over the last four years, by taking advantage of relaxed Biden border policies.
The hotel also at one point housed Jose Ibarra, the man who murdered Georgia student Laken Riley last year.
Also Wednesday, the Justice Department announced a lawsuit against New York Gov. Kathy Hochul and other state officials targeting one of the state’s sanctuary policies.
“New York has chosen to prioritize illegal aliens over American citizens. It stops. It stops today,” said Attorney General Pam Bondi.
She said the state’s so-called Green Light law not only allows unauthorized immigrants to obtain driver’s licenses, but shields their identities from federal law enforcement. It also requires the state to tip off those license holders if federal agents seek information.
Ms. Bondi said that contravenes federal law.
• Stephen Dinan can be reached at sdinan@washingtontimes.com.
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