The Department of Homeland Security says it has taken back $59 million in FEMA funds earmarked for hotels housing migrants in New York City, a day after it fired those involved in making the payment.
“Secretary Noem has clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels,” a DHS spokesperson told Fox News Digital.
“There will not be a single penny spent that goes against the interest and safety of the American people,” they said.
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Migrants are seen sleeping outside the Roosevelt Hotel in Midtown Manhattan on July 31, 2023. (Luiz C. Ribeiro/New York Daily News/Tribune News Service via Getty Images)
The announcement came after the Department of Government Efficiency (DOGE) said it had uncovered $59 million in payments for luxury hotels for migrants who had flooded into the sanctuary city during the recent crisis at the southern border. Elon Musk said the payments had been sent in the last week.
DHS announced Tuesday that it had fired four employees “for circumventing leadership” and making the payments unilaterally. The firings included FEMA’s CFO, two analysts and a grant specialist.
The use of FEMA to make payments related to immigration has been a topic of controversy in recent months. The funding comes via the Shelter and Services Program (SSP). It is congressionally appropriated and requires FEMA to use funding shifted over from Customs and Border Protection (CBP). The Biden administration pushed back last year over claims that disaster funding was being diverted, noting that the funding is appropriated to CBP and administered by FEMA.
A New York City Hall spokesperson confirmed to Fox News on Tuesday that the city had received funds “through the past week” that were allocated by the Biden administration for the purpose of housing and supporting illegal immigrants.
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Of the $59.3 million, $19 million was for direct hotel costs, while the balance funded other services such as food and security. According to NY City Hall, the funds were not part of a disaster relief grant.
“The previous administration left New York City largely on its own to manage an international humanitarian crisis. At its height, we took swift emergency action to house thousands of migrants arriving in our city every week – including in completely vacant hotels – ensuring that no family slept on our streets and that the public safety of longtime New Yorkers was not compromised,” a spokesperson said. “Thanks to our smart management of the crisis, we have helped over 184,000 migrants leave the city’s shelter system since the spring of 2022. But, we are not out of the woods yet.”
Homeland Security Secretary Kristi Noem and border czar Tom Homan speak with reporters at the White House, Jan. 29, 2025. (AP Photo/Alex Brandon)
A spokesperson said that it never paid luxury hotel rates, that the city applied for funding in April and FEMA allocated the funding last year.
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On Wednesday, NYC Comptroller Brad Lander responded to the revocation of funds by saying that NYC “cannot take this lying down.”
“I call on the Mayor to immediately pursue legal action to ensure the tens of millions of dollars stolen by Trump and DOGE are rightfully returned. If instead Mayor Adams continues to be President Trump’s pawn, my Office will request to work in partnership with the New York City Law Department to pursue aggressive legal action,” he said, according to the New York Post.
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Mayor Eric Adams later said on X that his office “learned about the federal government clawing back more than $80 million in FEMA grants applied for and awarded under the last administration, but not disbursed until last week.”
“While we conduct an internal investigation into how this occurred, our office has already engaged with the White House about recouping these funds and we’ve requested an emergency meeting with FEMA to try and resolve the matter as quickly as possible. The Corporation Counsel is already exploring various litigation options,” he said.
