New York City has filed a lawsuit against the Trump administration, challenging the retraction of $80 million in migrant aid funds. The funds were initially authorized and distributed by the Federal Emergency Management Agency (FEMA) to help cover expenses related to the asylum seeker crisis that began in the city in the spring of 2022. The lawsuit, filed in the U.S. District Court for the Southern District of New York yesterday also included a motion for a preliminary and permanent injunction and a temporary restraining order (TRO) against the federal government, according to the Official Website of the City of New York.
New York City argues that the $80 million, which was intended to reimburse the city for costs related to accommodating over 231,000 asylum seekers, was wrongly withdrawn on Tuesday last week, without notice or due process. Mayor Eric Adams highlighted the financial burden the city faces in the absence of adequate federal support, mentioning that the city has spent more than $7 billion over the last three years and needs to recover the basic amount our taxpayers are owed.
The lawsuit claims that the federal actions were unauthorized and violated federal regulations and the terms of the Shelter and Service Program (SSP) grant. Corporation Counsel Muriel Goode-Trufant criticized the federal government's attempt to justify the withdrawal through a "noncompliance" letter, which did not specify any actual noncompliance by the city. The letter, sent on Wednesday, cited vague "concerns" that the city views as an attempt to justify the fund withdrawal, as per the City of New York website.
The lawsuit argues that the federal government's actions were arbitrary, unlawful, and lacked proper procedure. The city also claims violations of the Due Process Clause, the separation of powers doctrine, and the Spending Clause of the U.S. Constitution. The court has been asked to immediately return the $80 million to the city and prevent any future financial withdrawals related to the SSP grants.
The City of New York has reported a decrease in the number of migrants needing shelter services, with fewer than 45,000 currently in need, down from 69,000 in January 2024. This reduction reflects the city's management of the crisis without federal assistance. With fewer migrants requiring shelter, the city has begun closing emergency response shelters, reducing the need for temporary facilities.
