A federal judge has rejected New York City’s request to temporarily block the federal government from withdrawing $80 million in emergency funding used for migrant shelters. However, the lawsuit challenging the decision will continue, according to officials.
Judge Jennifer Rearden ruled on Wednesday against granting a temporary restraining order but allowed the legal battle to proceed. The funds, part of a $200 million FEMA grant, were allocated to help shelter over 230,000 migrants who have arrived in the city over the past three years.
The Trump administration ordered the funds to be reclaimed last month as part of federal budget cuts led by Elon Musk’s Department of Government Efficiency. The move has sparked strong criticism from city leaders, including Comptroller Brad Lander, who confirmed the ruling.
“The case continues, and the New York City Law Department must keep fighting in court to recover these illegally seized funds and prevent Donald Trump from taking more from New York City,” said Lander, a mayoral candidate.
Neither the Southern District of New York nor the mayor’s office has responded to requests for comment on the decision. The case remains ongoing as city officials push to regain the disputed funds.