A potential legal battle is brewing between New York City and the Trump administration concerning over $80 million in federal funding for migrant shelters. While the city's legal department has stated its intent to sue for the return of the FEMA payments, questions have arisen regarding Mayor Eric Adams' support for the lawsuit, given his recent collaboration with the Trump administration.

The city's law department informed Comptroller Brad Lander of its plan to file a lawsuit by February 21, 2025, to recoup the $80.5 million in FEMA funds. This move follows the federal government's withdrawal of the funding, which was intended for migrant shelters. Interestingly, Lander is challenging Adams in the upcoming Democratic mayoral primary. Adding another layer to the situation, the Justice Department recently dropped a criminal case against Mayor Adams, leading some to speculate about a potential connection between the dropped charges and Adams' stance on the funding issue.

Corporation Counsel Muriel Goode-Trufant's letter to Lander emphasized the law department's representation of the city and dismissed the need for the comptroller's office to involve external counsel. This communication followed Lander's public call for legal action, urging the Adams administration to either sue or authorize him to hire attorneys to pursue legal action against both former President Trump and Elon Musk, who now heads the Department of Government Efficiency.

New York City Mayor Eric Adams departs Thurgood Marshall United States Courthouse in New York City on Friday, November 1, 2024. (Adam Gray for Fox News Digital )

Lander criticized what he perceived as inaction from the mayor, suggesting that Adams was prioritizing the Trump administration's agenda over the needs of New Yorkers. He stressed the importance of recovering the funds and warned of the potential repercussions of allowing the Trump administration's actions to go unchallenged. The revocation of the FEMA funds occurred on Tuesday and was brought to light by Lander the following day.

Lander directly accused Musk of illegally seizing federal funds and characterized the situation as "highway robbery." Musk had previously alleged misuse of FEMA funds by New York City, claiming they were being spent on luxury hotels for migrants, a claim echoed by Trump. However, the city maintains that the majority of the hotels used are not luxurious and that the funds were allocated for security, food, and other essential services.

New York City Mayor Eric Adams departs Thurgood Marshall United States Courthouse in New York City on Friday, November 1, 2024. (Adam Gray for Fox News Digital )

The city received two grants totaling $80.5 million during the Biden administration to manage the influx of migrants, many of whom were transported from Texas. These funds were allocated under the Shelter and Services Program, a congressional initiative designed to support local governments dealing with the migrant crisis. The FEMA reimbursement covered $12.50 per hotel room per night, with the remaining funds used for migrant services.

New York City Mayor Eric Adams departs federal court in Lower Manhattan on Friday, September 27, 2024. (Rashid Umar Abbasi for Fox News Digital)

The timing of the funding withdrawal coincides with the Justice Department's decision to drop federal corruption charges against Adams, raising questions about a potential link between the two events. The dropped charges, which included allegations of fraud, bribery, and soliciting campaign contributions from foreign nationals, have fueled speculation about Adams' relationship with the Trump administration.