New York City Mayor Eric Adams filed a lawsuit Friday against President Donald Trump and his administration after $80.5 million was withdrawn from a city bank account without permission. The move followed Elon Musk’s claim on X that the funds were illegally used for housing migrants in luxury hotels.
The lawsuit argues that the Trump administration violated federal laws and grant terms by reversing a federally approved transfer meant for immigrant services. City attorneys are demanding the funds be restored and that the White House be barred from further unauthorized withdrawals.
“The statements could not be clearer: Defendants’ purpose for grabbing back the funds was not related to the City’s specific expenditures at all, but to thwart the very purpose of the [Shelter and Services Program],” Corporation Counsel Muriel Goode-Trufant wrote in the complaint.
The controversy intensified after four FEMA officials were fired following Musk’s allegations. DHS and FEMA have not yet responded to the lawsuit. The legal battle adds to mounting tensions between the Trump administration and Democratic-led cities.
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