NYC cancels $220 million migrant shelter deal with Pakistan’s Roosevelt Hotel

Following intense backlash from MAGA supporters over the use of American taxpayer money to support asylum seekers in the US, the New York City is terminating its $220 million lease agreement with the Pakistan-owned Roosevelt Hotel , which had been operating as a shelter for migrants.

Facing pressure from the federal government and MAGA hardliners, Mayor Eric Adams, a Democrat who has aligned more closely with Trump-era policies after facing corruption allegations from the Biden administration, announced the facility’s closure.

The historic Manhattan hotel repurposed as an emergency shelter reportedly accommodated tens of thousands of migrants across its 1,025 rooms at an estimated cost of $200 per night.

More from World

‘Have some socks on:’ Vivek Ramaswamy called ‘uncivilised’ over barefoot interview 'He's something special': Vivek Ramaswamy launches Ohio governor bid; Trump, Musk endorse him

Today, we announced we will begin the process of closing down The Roosevelt Hotel’s Asylum Arrival Center and Humanitarian Emergency Response and Relief Center.

Here’s what to know: pic.twitter.com/l1NKtCNElC

— Mayor Eric Adams (@NYCMayor) February 24, 2025

The city has experienced a notable decrease in weekly migrant arrivals with numbers falling from 4,000 at the peak of the crisis in 2023 to around 350 currently.

Mayor Adams attributed the closure to the administration’s effective emergency response and policy measures, emphasizing that it would save millions in taxpayer dollars.

The deal with the Pakistani government, which effectively turned the historic Manhattan hotel into a migrant shelter had drawn sharp criticism from various quarters including Republican leaders and conservative commentators.

Businessman and former Republican presidential candidate Vivek Ramaswamy was among the most vocal critics, slamming the arrangement as an example of wasteful spending.

“A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government, which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country. This is nuts,” Ramaswamy wrote on X.

As reported by Fox Business, the Roosevelt Hotel deal had been a source of controversy, with many questioning why U.S. taxpayer money was being directed to Pakistan while New York City grappled with its own financial and housing challenges.

The closure of the Roosevelt Hotel as a migrant center signals a change in NYC’s strategy for managing the influx of migrants. While city officials affirm their commitment to assisting asylum seekers, they are now exploring more cost-effective and locally managed solutions to alleviate the burden on taxpayers.