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FEMA paid New York City $80,481,861.42 on February 4, 2025, then the federal government withdrew the money from a city account on February 11. The funds were reimbursements under FEMA’s Shelter and Services Program for shelter and related services for noncitizens released from federal custody—not disaster aid for hurricane or flood victims. New York City sued to recover the money. A judge declined to order its immediate return in March 2025, but that emergency decision did not settle whether the withdrawal was lawful.
What happened to the $80 million?
The New York City Law Department said FEMA disbursed $80,481,861.42 to the city on February 4, 2025, and the federal government took it back from a city account on February 11. The city said the payment reimbursed expenses it had already incurred for services delivered between November 2023 and October 2024. The City Law Department’s announcement gives the precise combined amount.
The Associated Press reported that the payment comprised two disbursements, rounded to $58.6 million and $21.9 million. Those rounded figures do not add up exactly to the city’s precise total. AP also reported that about $19 million in reimbursement claims related to hotel costs; the full payment was not solely for hotels. AP’s fact check describes the funding and the city’s account of its use.
What was the FEMA program for?
The money came from FEMA’s Shelter and Services Program (SSP), administered with U.S. Customs and Border Protection. Congress funded SSP to support nonfederal entities providing shelter and related services to noncitizens released from Department of Homeland Security custody, and to relieve overcrowding in CBP short-term holding facilities. It was not disaster-relief aid for people affected by a hurricane, flood, or other disaster.
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New York City said the reimbursements covered costs such as shelter, security, food, and related services. The city characterized the funds as reimbursement for services already delivered, rather than money paid directly to hotels. The federal withdrawal therefore concerned a specific SSP payment, not all FEMA funding to New York City.
Why did the federal government take the money back?
The federal government said it was reclaiming the funds because of concerns about illegal activity at a shelter, according to the Associated Press’s account of the dispute. The city disputed the rationale and challenged the way the money was withdrawn. It said FEMA had reviewed, approved, and paid the reimbursements, then removed the funds without notice or a meaningful opportunity for the city to respond.
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Those are opposing positions in the dispute, not findings that resolve it. The city called the withdrawal unlawful in its public statements and lawsuit; that characterization should not be confused with a final court ruling. AP’s report on the court proceedings describes the federal rationale and the city’s challenge.
What happened in court?
New York City filed suit in the Southern District of New York on February 21, 2025, seeking to recover the funds and obtain injunctive relief. The city alleged the funds had been removed without notice or the administrative process required by applicable rules and grant terms. Those assertions are allegations in the city’s case.
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On March 5, 2025, a federal judge declined to order the money restored immediately, finding the city had not established irreparable harm for emergency relief. That ruling addressed the request for an immediate court order; it was not a decision on the merits of whether the federal government could lawfully reclaim the reimbursement.
The New York City Independent Budget Office reported in October 2025 that the case remained pending. The specific lawsuit’s final disposition after that report is not established here, so it would be inaccurate to say the city ultimately won or lost. The IBO report discusses the case in the context of federal changes affecting the city.
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Key dates in the dispute
| Date | What happened |
|---|---|
| February 4, 2025 | FEMA disbursed $80,481,861.42 to New York City, according to the City Law Department. |
| February 11, 2025 | The federal government withdrew the funds from a city account. |
| February 12, 2025 | Comptroller Brad Lander said his office had discovered the withdrawal. He called it an illegal revocation; that was his allegation. |
| February 14, 2025 | Lander said the city’s Corporation Counsel had agreed to commence legal action within one week. |
| February 21, 2025 | New York City filed suit seeking recovery of the money and injunctive relief. |
| March 5, 2025 | A judge declined to order immediate restoration of the funds. The emergency ruling did not decide the underlying merits. |
| October 2025 | The NYC Independent Budget Office reported that the lawsuit remained pending. |
The February 12 and February 14 statements are available from the Comptroller’s office and its February 14 update. The dates and lawsuit details are also set out in the City Law Department announcement.
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