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Home » Judge Halts NYC’s Attempt to Quickly Recover $80.5M FEMA Grant for Housing Undocumented Immigrants

Judge Halts NYC’s Attempt to Quickly Recover $80.5M FEMA Grant for Housing Undocumented Immigrants

By Darnell ThompkinsMarch 6, 2025Updated:March 6, 2025 Daily News Cycle 1 Comment4 Mins Read
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New York City recently faced a setback in court regarding its attempt to reclaim $80.5 million in federal grants, originally provided during the Biden administration to manage the influx of illegal immigrants. A federal judge, Jennifer Rearden, decided against the city’s plea to have these funds returned immediately, stating that New York City had not demonstrated any irreparable harm and could potentially win the funds back if their lawsuit succeeds. This decision came after a hearing held in Manhattan’s federal court.

The legal tussle began on February 4 when city officials took action against the decision by the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security to retract the funds from a city account. On February 12, Homeland Security Secretary Kristi Noem announced the withdrawal of FEMA funds, which had been used to accommodate illegal immigrants in New York City hotels. Noem pointed out that “FEMA was funding the Roosevelt Hotel,” which had been associated with criminal activities, including housing the alleged killer of Laken Riley, a young nursing student.

Laken Riley’s murder by Jose Antonio Ibarra, who illegally entered the U.S. from Venezuela in 2022, intensified the debate surrounding this funding. On February 12, Noem remarked that the funds constituted “the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels.” This statement sparked further controversy, with New York City officials describing the fund retraction as a “money grab” that ignored Congress’s original intentions when allocating these resources.

The city’s lawsuit sought to compel the Trump administration to promptly return the $80.5 million and prevent similar actions in the future. Initially, FEMA had provided these funds to help New York City deal with the costs of housing illegal immigrants in hotels following a surge in immigration during the Biden administration. However, under President Trump’s administration, there has been a strong focus on curbing illegal border crossings and increasing deportations.

In a court filing on February 28, the Justice Department accused New York City of allowing the Roosevelt Hotel to become a hub for criminal activities while it served as temporary housing for illegal immigrants. The agency’s lawyers argued that halting the funding was reasonable while investigations were ongoing. They emphasized that since the $80.5 million was meant to reimburse expenses the city had already faced, there was no urgent need for the funds to be returned immediately.

On March 3, New York City officials countered, expressing concerns that proposed legislation to end the illegal immigrant shelter program might prevent them from recovering the funds. The city argued that concerns over crime were “red herrings,” as FEMA had previously determined that the city was entitled to the funds. The ongoing legal battle reflects broader tensions between federal priorities and local needs.

In a related development, Mayor Eric Adams announced last month that the Roosevelt Hotel would no longer be used as a shelter due to a decline in the arrival of illegal immigrants. This decision reflects the changing dynamics and pressures the city faces in managing its resources effectively. The case continues to evolve, with both sides presenting compelling arguments for their positions.

While the city’s legal team presses on with their case, the implications of this funding dispute reach beyond the immediate financial concerns. The outcome could set a precedent for how federal funds are managed and contested, particularly in politically sensitive areas like immigration. As the case unfolds, it remains a focal point for discussions on immigration policy and federal-state relations.

The legal proceedings and their outcomes will be closely monitored by various stakeholders, each with vested interests in the broader implications of such funding disputes. The narrative surrounding this case underscores the complexities of immigration policy and the challenges faced by cities on the front lines. The ongoing developments serve as a reminder of the intricate balance between federal oversight and local governance.

The city’s actions and the federal response highlight the contentious nature of immigration funding and policy in the current political climate. As the situation progresses, it will undoubtedly continue to generate debate and scrutiny from all sides of the political spectrum. The resolution of this case may influence future interactions between city administrations and federal agencies in addressing similar issues.

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1 Comment

  1. henry plante on March 8, 2025 1:08 PM

    It appears that they wanted all the illegals they could get as long as Biden was sending them the money to indulge their foolishness but when the new administration took over and the funds dried up it became critical that the stupidity be continued! The city is in violation of federal laws and the so called city administration is also in violation of their oath of office to enforce the laws of the Constitution. Since when is the breaking of laws considered an emergency? FEMA should never have given them a penny as the so called emergency was of their own making! There is a saying that fits this mess to a T ; “Since when does poor planning on your part constitute an emergency on my part!”

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