Trump Strikes Back at NYC's Adams Over Missing $80 Million, Says Funds Were Pulled To Stop Activity of Venezuelan Gang

The Trump administration has pushed back against a lawsuit filed by New York City Mayor Eric Adams over the reversal of an $80 million payment intended to reimburse the city for service related to non-citizen immigrants.

The funds, which had been approved by Congress, were to cover costs incurred by the city for housing and services for migrants.

However, the White House argued that the funds were pulled because they might have been used to indirectly support a violent Venezuelan gang, Tren De Aragua, operating out of a migrant shelter at the Roosevelt Hotel, POLITICO reports, citing a filing.

Earlier this month, the city’s Law Department criticized Trump for conducting an “unlawful money grab” that seized Federal Emergency Management Agency payments without advance notice, New York Post reported, citing a suit filed in the US District Court in the Southern District of New York.

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In its legal response, the Trump administration argued that FEMA acted within its rights by pausing the funds while investigating potential ties between the gang and the migrant housing.

Federal attorneys contended that if the city housing for immigrants was being used for illegal activities, such as facilitating gang operations, the government was justified in suspending funding until the issue was resolved.

The city’s Law Department argued that the move had caused significant harm to New York City, which has already spent billions of dollars in response to the ongoing migrant crisis.

The Adams administration is seeking the return of the $80 million and a court order preventing the federal government from pulling similar payments in the future.

The situation is notable as it marks a rare instance of Adams openly challenging the Trump administration.

The mayor had previously worked to build rapport with Trump, including a reported quid pro quo arrangement related to the dismissal of a federal criminal case involving Adams, POLITICO adds.

The lawsuit remains ongoing, with both sides awaiting further legal developments.

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