In a recent court filing, the Trump administration has defended its decision to withdraw $80 million from a New York City bank account, sparking a legal battle with Mayor Eric Adams.
The administration’s legal team countered Adams’ lawsuit by asserting that FEMA acted within its rights in reclaiming the funds from a municipal Citibank account. The withdrawn amount, approved by Congress, was intended to reimburse the city for expenses related to services for non-citizen immigrants. Federal authorities clarified that the aid was temporarily paused pending an investigation into potential ties between the funds and a violent Venezuelan gang called Tren De Aragua.
Legal Standpoint
Regarding the lawsuit, federal attorneys argued that the case revolves around the federal government’s ability to halt funding if a grantee providing housing for illegal immigrants allows their facilities to be taken over by a terrorist group for illicit activities. The administration cited a New York Post article linking Tren De Aragua to the Roosevelt Hotel, where a significant portion of the funds was designated for migrant operations.
City Hall refrained from immediate comments on the lawsuit or addressing any alleged connections between Tren De Aragua and the Roosevelt Hotel.
Federal authorities emphasized that the city has not demonstrated irreversible harm due to the fund withdrawal since the action was temporary.
Response and Legal Action
Mayor Adams’ administration initiated the lawsuit, accusing the Trump administration of breaching federal regulations and grant terms by retracting the payment. The local government seeks an injunction against similar withdrawals in the future and the return of the $80 million.
This lawsuit signifies a rare clash between Adams and the White House, as the mayor had previously cultivated a positive relationship with the administration. Despite previous interactions, tensions escalated when the Justice Department, under Trump, sought to dismiss a federal case against the mayor. The situation led to allegations of a quid pro quo, which Adams’ attorney denied, resulting in the prosecutor’s resignation.
