Comptroller Brad Lander Accuses Elon Musk of Illegally Seizing $80 Million in Federal Aid for Migrants

Trump Administration's Clawback of Funds Creates Legal Chaos Over NYC’s Migrant Housing Budget / AP

New York City Comptroller Brad Lander has voiced strong opposition after discovering that $80 million, which was appropriated by Congress to aid in housing migrants, was unexpectedly withdrawn from the city’s bank account. The funds, initially allocated by the Federal Emergency Management Agency (FEMA), were meant to cover costs the city had already incurred as part of its migrant housing efforts.

Lander, who is also campaigning for mayor, did not hold back in his condemnation. He accused Elon Musk of “highway robbery” for allegedly being involved in the seizure of these federal funds, which had already been approved and allocated by Congress. Lander’s accusations are grounded in the claim that Musk, along with the Trump administration, acted unlawfully by removing money that was rightfully due to New York City to cover already incurred expenses for migrant shelters.

The controversy erupted after federal officials confirmed that FEMA had “clawed back” the $80 million, a move that has raised a number of legal questions. Lander, along with other city officials, argued that the federal government’s action is not only unusual but potentially illegal, especially considering that Congress had authorized the funds to assist in migrant housing.

Lander took to social media to express his frustration, stating: “This is highway robbery. Elon Musk, with no legal authority, illegally seized federal funds from New Yorkers.” He emphasized that the $80 million was essential to reimburse the city for prior costs incurred, and that removing the funds left New York City in a difficult financial position.

The situation has sparked a wider debate about the legality of the federal government's ability to retract funds after they have been allocated by Congress. Such actions are rare and have led to questions about whether the Trump administration, along with Musk's involvement, overstepped its bounds. While Musk’s role in the clawback remains a point of contention, the incident has brought attention to the broader issue of federal overreach and the potential consequences for local governments relying on federal assistance.

In addition to his criticism of Musk, Lander also criticized New York City Mayor Eric Adams for not taking a more aggressive stance against the federal government’s actions. Lander suggested that Adams’ political connections with the Trump administration, including a recent meeting at Mar-a-Lago, may have influenced his lack of response to the issue.

Kristi Noem, the newly appointed Secretary of Homeland Security under the Trump administration, defended the clawback, claiming that FEMA had acted to retract funds that were wrongly allocated to “luxury migrant hotels.” Noem specifically pointed to the Roosevelt Hotel, which houses migrants, and alleged that it had ties to the Tren de Aragua, a Venezuelan criminal gang. However, it remains unclear whether the withdrawn funds were actually linked to the Roosevelt Hotel or if they were part of the larger FEMA allocation for migrant housing.

Lander responded sharply to these claims, maintaining that the funds were vital for covering legitimate expenses. He also questioned the federal government’s motives, calling the clawback an attempt to undermine New York City's ability to provide for vulnerable migrants. Meanwhile, Musk’s response on social media, which included a post featuring three flame emojis, added to the growing tension between city officials and the federal government.

As the controversy unfolds, New York City is exploring its legal options to retrieve the $80 million. Liz Garcia, a spokesperson for Mayor Adams, confirmed that the city is in communication with the White House and FEMA in an attempt to resolve the matter quickly. Legal action may be taken if the funds are not reinstated.

In the meantime, FEMA has already taken steps to address the internal issues surrounding the payment. The agency's acting administrator, Cameron Hamilton, confirmed that several employees who were involved in the improper payments had been terminated. The Department of Homeland Security also criticized the employees for approving payments for luxury accommodations, which the department claims are inappropriate given the intended purpose of the funds.

This ongoing dispute highlights a broader issue of the federal government’s control over funds allocated to local governments and raises questions about the future of FEMA’s role in disaster and migrant relief efforts. With New York City’s migrant housing efforts under increasing strain, the outcome of this financial dispute will have lasting implications for both the city and the broader political landscape.