On Friday, New York City Mayor Eric Adams filed a lawsuit against former Donald Trump and his administration, demanding the return of $80 million that was wrongfully withdrawn from a city bank account.
The funds had been allocated by Congress for immigrant services, but the White House reversed the transfer after Elon Musk’s public criticism on Twitter. Musk had accused FEMA of violating the law by allocating the funds for lodging non-citizen migrants, specifically at the Roosevelt Hotel in Manhattan.
Adams expressed frustration, stating, “Without a doubt, our immigration system is broken, but the cost of managing an international humanitarian crisis should not overwhelmingly fall onto one city alone.”
City attorneys argue the Trump administration unlawfully seized the funds, citing a violation of federal banking laws and regulations. Corporation Counsel Muriel Goode-Trufant accused the federal officials of trying to mask their unlawful actions, claiming their real intent was to disrupt the very purpose of the Shelter and Services Program (SSP) meant to assist immigrants.
The funds had been allocated for humanitarian purposes, yet were mistakenly tied to luxury hotels, despite FEMA’s approval. The city is now seeking the return of the funds and preventive measures against future seizures.
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