The Trump administration's FEMA retrieved $80 million from New York's coffers, a move that stunned officials like City Comptroller Brad Lander. Lander was unaware that the federal government could have access to the city's funds, describing the action as unprecedented and likening it to 'highway robbery.' This occurred after the city successfully invoiced the federal government for approved expenses related to housing migrants. The removal of funds caused a significant overdraft in city accounts after the city had transferred the amount following its deposit. Lander's comments highlighted the implications of federal control over state finances.
We think it was taken back by the federal government. Did you know they could do that? Never, Lander replied, calling it unprecedented. He added that the city sent the federal government an invoice detailing the expenses, which the feds subsequently approved. And then, lo and behold, they just yank it right back. It is highway robbery.
After receiving the $80 million, the city moved the money to another account, which caused a massive overdraft when the federal government took back the money.
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