New York City has filed a federal lawsuit against the Trump administration, accusing it of illegally seizing $80 million in FEMA funds meant to reimburse the city for migrant crisis expenses. The suit, filed in U.S. District Court for the Southern District of New York, calls the move a “money grab” and demands the immediate return of the funds.

According to the lawsuit, the federal government quietly withdrew the $80 million from the city’s bank account on February 11 after FEMA had already approved and disbursed the funds to cover costs for shelter and humanitarian services provided to asylum seekers.

Mayor Eric Adams condemned the move, stating:

“With very little help from the federal government, we have skillfully managed an unprecedented crisis, with over 231,000 people seeking shelter in our city. FEMA’s $80 million, which was approved and paid, then rescinded, is the bare minimum our taxpayers deserve. We will fight to get every dollar we are owed.”

New York City Comptroller Brad Lander also issued a strong response, accusing Elon Musk’s Department of Government Efficiency (DOGE) of orchestrating the withdrawal.

“After my office discovered that Elon Musk and his DOGE goon squad stole $80 million from the city’s coffers, we pressured Mayor Adams to sue the federal government. The lawyers standing up to Trump and Adams’ collusion deserve praise. We demand that Donald Trump return the money he stole from New York.”

The lawsuit comes as President Donald Trump publicly criticized FEMA, suggesting he is considering eliminating the agency entirely.

“FEMA has been a big disappointment. It’s slow, it’s inefficient. Maybe we need to get rid of it,” Trump said in recent remarks.

City officials argue that the sudden removal of funds reflects political retaliation rather than a legitimate fiscal review, calling it an attempt to permanently withhold aid from New York City amid its ongoing migrant crisis.

The case marks another flashpoint in the escalating legal battles between New York and the Trump administration over immigration policy and federal funding.