New York City has filed a lawsuit against the Trump administration for taking back $80.5 million in federal aid meant to support migrant housing.

The city argues that the money was legally approved and that its removal goes against Congress’ intentions.

The dispute began when the Federal Emergency Management Agency (FEMA) transferred the funds to New York City on February 4. However, just days later, the money was suddenly withdrawn from the city’s account without warning.

Kristi Noem, the homeland security secretary, confirmed the move in a post on X on February 12. She claimed that FEMA officials had wrongly sent the funds to migrant hotels in New York City, and that her team had taken action to recover them.

The lawsuit demands the return of the money and calls for legal protection to prevent similar actions in the future.

Former President Donald Trump has repeatedly criticized FEMA for spending taxpayer money in Democrat-led cities.

His adviser, Elon Musk, also weighed in, claiming that most of the $80.5 million was used for expensive hotel stays for migrants. Musk argued that sending the funds violated an executive order.

Additionally, Noem and a FEMA official alleged that the Roosevelt Hotel in midtown Manhattan, used as a migrant shelter, had connections to criminal activities involving the Venezuelan gang Tren de Aragua.

New York City officials strongly deny these claims. They argue that Musk’s statements contained false information and that there is no proof linking migrants at the Roosevelt Hotel to crime.

Mayor Eric Adams emphasized that while the immigration system needs reform, the financial burden should not fall entirely on New York City. He pointed out that the city has already spent over $7 billion on migrant housing in the past three years.

“The $80 million that FEMA approved, paid, and then took back is the bare minimum our taxpayers deserve,” Adams stated.

The White House has not yet commented on the lawsuit.