NYC Comptroller Calls for Lawsuit Against Trump, Musk Over $80M in Seized FEMA Funds

New York City Comptroller Brad Lander has called for immediate legal action against President Donald Trump and the Head of the Department of Government Efficiency, Elon Musk, over the alleged seizure of $80 million in federal Shelter and Services Program (SSP) funds from the city’s bank account.

Lander revealed that his office had sent a letter to the New York City Law Department, demanding urgent legal proceedings to recover the funds, which were withdrawn without notice by the Federal Emergency Management Agency (FEMA) at the direction of the Trump administration on February 11, 2025.

“For days, I have been raising the alarm that if the Mayor does not pursue a lawsuit against the federal government, I will,” Lander stated. “I am happy to hear my demands have pushed the Law Department to pursue litigation. I look forward to doing everything in my power to help the city recoup the FEMA funds stolen by President Trump and to hold accountable those intent on working against the best interests of New Yorkers.”

Lander’s letter, addressed to Corporation Counsel Muriel Goode-Trufant, emphasized the urgent need for legal action to secure the return of the funds, which are critical to maintaining the city’s budget and delivering essential services. The letter states that the funds were discovered missing on February 12, 2025, after an assessment by the Comptroller’s Office and the New York City Department of Finance. Lander has requested confirmation from the Law Department regarding its intent to file a lawsuit.

“If the Law Department is unwilling or unable to take legal action, I am requesting immediate authorization for my office to engage external legal counsel to represent the city in this matter,” Lander wrote. He further pressed for a response by 10 AM on February 18, 2025, underscoring the urgency of recovering the funds. The Law Department has yet to issue a formal response regarding its next steps.

The Department of Homeland Security (DHS) had clawed back payments made by FEMA to luxury hotels in New York City for migrants. A DHS spokesperson confirmed that Secretary Noem ordered the full clawback of the payments.

“Secretary Noem has clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels. FEMA was funding the Roosevelt Hotel, which serves as a Tren de Aragua base of operations and was used to house Laken Riley’s killer,” the statement read. “There will not be a single penny spent that goes against the interests and safety of the American people.”

The Roosevelt Hotel, once a prominent fixture in Manhattan, has been a focal point in recent discussions about the use of government funds for migrant housing.

DHS had fired four senior FEMA employees for authorizing unauthorized payments for luxury hotel accommodations in New York City for migrants. The firings include FEMA’s Chief Financial Officer, two program analysts, and a grant specialist.