The Department of Homeland Security (DHS) announced it is reclaiming $59 million in Federal Emergency Management Agency (FEMA) funds previously allocated to New York City for housing migrants.

"Secretary Noem has clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels," a DHS spokesperson told Fox News. "There will not be a single penny spent that goes against the interest and safety of the American people."

The decision follows a federal judge's ruling allowing the Trump administration to withhold these funds, which were intended to cover hotel costs for migrants. U.S. District Judge John McConnell ruled that the government's actions were in line with existing statutes and regulations, denying a motion for an emergency hearing on the matter.

The funds were part of the Shelter and Services Program, which reimburses states and localities for expenses incurred while caring for migrants. However, the Trump administration argued that the funds were facilitating illegal activities at a Manhattan hotel used to house migrants.

The move has sparked controversy, with New York City Comptroller Brad Lander calling the action "highway robbery" and urging Mayor Eric Adams to take legal action. Lander expressed concerns over the legality of the federal government's decision to withdraw the funds, which he described as a betrayal to New Yorkers.

The funds were initially discovered by Elon Musk, head of the Department of Government Efficiency, who claimed the payments violated the law. After Musk disclosed the payments, DHS fired four FEMA employees who were responsible for disbursing the funds.

City officials have disputed Musk's claims, stating that only a portion of the funds was used for housing migrants in hotels. They emphasized that the majority of the funds were allocated for other services, such as food and security, as part of the city's efforts to manage the ongoing migrant crisis.