Louisburg, North Carolina — According to a North Carolina sheriff, the $59 million that FEMA clawed back from New York City for sheltering migrants should be directed to Hurricane Helene survivors in the mountains.
The late September hurricane caused historic flooding in western North Carolina, killing over 100 people and damaging 74,000 homes.
The Federal Emergency Management Agency has reclaimed more than $80 million from New York City, officials said Wednesday, escalating a standoff between the Trump administration and the country’s largest city over funds for migrant shelter.
A $59 million grant that the administration challenged earlier this week, as well as another $21.5 million award, are no longer in effect, according to City Comptroller Brad Lander.
Franklin County Sheriff Kevin White stated on Monday that the funds should be distributed to North Carolina residents before they were officially returned to New York City.
“FEMA should IMMEDIATELY direct those funds toward housing US taxpayers in Western North Carolina,” White stated on social media. “These folks have been in dire straits for months.”
The grants were applied for and awarded during Democratic President Joe Biden’s administration, but they were not paid out until last week, according to the city.
Soon after, Trump adviser Elon Musk flagged $59 million in payments, claiming on X that his Department of Government Efficiency discovered the funds were used to house migrants in “luxury hotels.” Musk provided no evidence to support his claim.
On Monday, Sheriff White echoed the claim that immigrants had been living for free in “luxury hotels.”
“Recent audits by DOGE have uncovered that FEMA sent $59 Million to New York City Luxury Hotels for the purposes of housing illegal aliens,” White disclosed in an email.
In the last two years, New York City has leased several budget hotels and other vacant buildings and converted them into migrant shelters.
FEMA’s acting administrator stated in court documents filed Tuesday that the funds were being reclaimed due to concerns about “illegal activities” at a hotel.
Most of the former hotels leased by the city are now occupied by families with children. According to the Associated Press, none are considered “luxury” by most travelers.