Trump admin claws back another $106M in NYC migrant crisis aid; City Hall vows to launch legal action

The Trump administration is clawing back an additional over $106 million of Congressionally-allocated migrant crisis aid from New York City — a move Mayor Eric Adams plans to challenge in court.

The situation marks yet another test of how far Adams will go to defend the Big Apple against Trump’s aggressive policies, especially when it comes to the migrant crisis — an issue the mayor heavily criticized former President Biden for handling poorly. Adams previously said he would not criticize Trump, whose Justice Department succeeded in getting the mayor’s corruption indictment dropped by a federal judge last week.

The Department of Homeland Security (DHS) and Federal Emergency Management Agency (FEMA) informed City Hall of their plans to terminate the Congressionally approved Shelter and Services Program funding in an April 1 letter, a copy of which amNewYork obtained. The funding, appropriated under former President Biden’s administration, is meant to reimburse the city for a portion of the over $7 billion it has spent on providing services for newly arrived migrants over the past three years.

According to Adams’ office, the $106 million is the remainder of the $223 million in migrant funding the feds had allocated to the city. Trump’s administration has already clawed back $80 last month and froze another $37 million the city was prepared to claim.

FEMA boss Cameron Hamilton, in the April 1 missive to the mayor, said the agency is rescinding the funds because they were awarded under a grant program that supports “or has the potential to support” illegal immigration, which conflicts with the Trump administration’s ongoing crackdown on the practice.

“Like their previous actions clawing back appropriated funds, these steps are unlawful, and the New York City Law Department is currently determining the best legal recourse to take to ensure that this money remains in New York City, where it was allocated and belongs,” Mayor Eric Adams said on April 8, 2025.Photo by Dean Moses

“The individuals receiving these services often have no legal status and are in the United States unlawfully, such as those awaiting removal proceedings,” the letter reads. “This, in turn, provides support for illegal aliens and is not consistent with DHS’s current priorities. For these reasons, DHS/FEMA is terminating your awards.”

The Trump administration’s action comes after it clawed back a previous $80 million in migrant crisis aid from a city bank account without any warning on Feb. 11. The city, in turn, sued the feds on Feb. 21 to get the money back—a matter that is still being worked out in the courts.

Adams, in a statement, vowed to take additional legal action to block the feds from clawing back the $106 million.

“Like their previous actions clawing back appropriated funds, these steps are unlawful, and the New York City Law Department is currently determining the best legal recourse to take to ensure that this money remains in New York City, where it was allocated and belongs,” Adams said. “Simply put, this SSP grant from the federal government is the bare minimum New York taxpayers deserve. We will continue working to ensure our city’s residents receive every dollar they are owed and to prevent this funding clawback from taking effect.”

Adams railed against the Biden administration for well over a year for not reimbursing the city for far more of what it spent on the migrant crisis.

Yet, since Trump took office on Jan. 20 and his administration began to claw back what little money the city received under Biden, Adams has been far more careful about criticizing the president specifically and has continued to blame his predecessor for the ordeal.