NYC Sues Trump Administration Over FEMA Fund Clawback

New York City has filed a lawsuit against the Trump administration after FEMA unexpectedly rescinded over $80 million in funding intended for migrant housing. The funds, originally approved under the Shelter and Services Program, were withdrawn from the city's account without prior notification, leading to accusations of a 'lawless money grab.' FEMA cited concerns about illegal activities at a hotel as justification, but specifics remain vague, and critics argue the decision was politically motivated. Mayor Eric Adams highlighted that the rescinded funds are crucial for the city, which has spent over $7 billion on migrant services since 2022. The lawsuit was filed in the Manhattan U.S. Attorney's Office to recover the funds and prevent future unauthorized withdrawals.