NYC Bid for US to Return $80 Million in FEMA Funds Is Denied
Source: Bloomberg, via Yahoo! Finance
Bloomberg
NYC Bid for US to Return $80 Million in FEMA Funds Is Denied
Chris Dolmetsch and Erik Larson
Wed, March 5, 2025 at 3:54 PM EST 4 min read
(Bloomberg) -- A federal judge denied New York City’s request for an immediate return of $80 million that the Trump administration clawed back after the money had been awarded as reimbursement for shelter provided to migrants.
US District Judge Jennifer Rearden issued her ruling Wednesday after a hearing, saying the city hadn’t demonstrated it would be irreparably harmed by having to wait until its lawsuit against the federal government is concluded. The judge agreed with the US Justice Department that the city would have means to get the money back later if it won the case.
New York sued Feb. 21, alleging that the Federal Emergency Management Agency took the money without notice from the city’s bank account on Feb. 11. The administration said the funds were paid by mistake and were paused to ensure money wasn’t being used to facilitate criminal activity at the Roosevelt Hotel in Manhattan, where many migrants were housed.
The government cited media reports that indicate the hotel was taken over by the violent Tren De Aragua gang, which has been designated as a terrorist organization by the Trump administration. But a lawyer for the city, Joshua Paul Rubin, said FEMA never asked the city about the alleged criminal activity and reiterated that all recipients had been approved for financial assistance by the federal government itself.
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Read more: https://finance.yahoo.com/news/judge-refuses-nyc-bid-us-192318769.html
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