New York City mayor Eric Adams plans to file a lawsuit against the Trump administration after it revoked more than $80 million in funding for migrant shelters.

New York City officials said the city had received two payments from the federal government as reimbursement for expenses the city incurred while providing services to migrants who arrived in New York,

Federal funds to reimburse the city for costs of the migrant crisis have been withdrawn from city bank accounts, City Comptroller Brad Lander said.

FEMA payments to New York City for migrant assistance came under scrutiny this week as Elon Musk claimed his Department of Government Efficiency had uncovered $59 million in illegal payments to house migrants in luxury hotels when it was meant for American disaster relief.

The discovery of a $59 million FEMA payment to New York City for housing migrants comes as DOGE continues to find controversial uses of taxpayer dollars by government agencies.

The $80 million in funding was clawed back after the Trump administration claimed the money was being used to house migrants in “luxury hotels.”

U.S. District Judge John McConnell in Rhode Island ruled that the government's bid to withhold Federal Emergency Management Agency money sent to New York to house migrants was not subject to an order, still in effect, that's aimed at preventing a sweeping Trump administration pause on federal funding.

The ruling comes after Elon Musk claimed, without evidence, that $59 million in FEMA funds were used to cover high-end hotels for migrants.

The funding was clawed back as New York City denies allegations by tech billionaire Elon Musk the money was going toward “luxury” hotel lodging for migrants.