 "$80 mn vanishes from New York City's bank accounts. Trump administration says took it back because...")
Federal funding worth $80 million meant to cover the housing of migrants in New York City has been clawed back by the Trump administration days after DOGE chief Elon Musk said that $59 million had been spent to pay for the luxury hotels where immigrants were accommodated.
A report by the New York Times says that authorities noticed that city bank accounts fell short of a whopping $80 million on Wednesday following which the Department of Homeland Security confirmed that the amount was taken back by the government.
Under former President Biden, the Federal Emergency Management Agency (FEMA) faced criticism when reports emerged that, despite a shortage of funds for Hurricane Helene victims, it was distributing money that ultimately went toward assisting illegal immigrants.
Meanwhile, city officials are questioning the legality of the move as Liz Garcia, a spokeswoman for Mayor Eric Adams said that the City Hall has requested a meeting between the White House and FEMA to “try and resolve the matter as quickly as possible.”
Why was the money taken back?
Kristi Noem, the Homeland Security secretary said, “I have clawed back the full payment that FEMA deep state activists unilaterally gave to N.Y.C. migrant hotels. Mark my words: there will not be a single penny spent that goes against the interest and safety of the American people.”
Noem appeared to defend the decision to reclaim the funds by alleging that the city was using FEMA money to support migrant housing at the Roosevelt Hotel in Midtown Manhattan. She further claimed that the hotel was functioning as a “base of operations” for Tren de Aragua, a Venezuelan gang that Trump recently took steps to classify as a foreign terrorist organization.
‘Illegal’
Some legal experts argued that the federal government must uphold legally binding contracts and suggested that reclaiming the $80 million could be unlawful if FEMA’s reimbursement agreement with the city did not permit such a reversal.
David A. Super, a professor of administrative law at Georgetown University, said as per NYT, “In addition, this appears to be an attempt to impound appropriated funds without following the procedures set out in the Impoundment Control Act.”
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