NYC Mayor Eric Adams is suing Donald Trump to recover $80.5 million the administration withdrew following a tweet from Elon Musk.
New York City Mayor Eric Adams has filed a lawsuit against Donald Trump and other individuals in his administration seeking to recover $80.5 million the federal government withdrew from a city bank account without permission.
The funds were originally approved by Congress and earmarked for immigrant services, Politico report. However, the money was clawed back by the Trump administration on February 11, the day after Elon Musk criticized the funding on social media.
Musk sparked controversy when he tweeted that FEMA had illegally sent $57 million for “luxury hotels in New York City to house illegal migrants,” instead of using it for American disaster relief. He called it a violation of the law and “gross insubordination to the President’s executive order.”
However, the funds came from a DHS program meant to reimburse local governments for non-citizen immigrant services, not disaster relief. The money was used for lodging at the Roosevelt Hotel in Midtown Manhattan at a FEMA-approved rate, not for luxury accommodations.
Despite Musk’s misleading claims, the Trump administration fired four FEMA officials responsible for the payment.
NYC alleges that the Trump administration violated federal laws, grant terms, and regulations in reversing the transfer.
The city is asking for the money to be restored and for the administration to be prevented from similar actions in the future.
This legal action marks a rare instance of public opposition to Trump from Adams, who had previously avoided criticizing the president.
Eric Adams’ Relationship With Donald Trump Faces Scrutiny
The lawsuit comes amid controversy surrounding Adams’ relationship with the Trump administration and his own federal corruption case.
A federal judge has reportedly indefinitely adjourned the trial, which was originally scheduled for April 21. Judge Dale Ho has not dismissed the charges against Adams, leaving the federal corruption indictment in place.
Adams appeared in court on February 19 for a conference with Judge Ho. The mayor denied any quid pro quo arrangement influencing the Department of Justice’s decision to dismiss the case.
Several top federal prosecutors resigned rather than agree to drop the charges against Adams.
New York Governor Kathy Hochul announced she would not exercise her power to remove Adams from office and imposed “guardrails” on Adams.
Critics suggest the dismissal request may be linked to Adams assisting with Trump administration priorities on immigration enforcement.
