New York City on Friday sued President Donald Trump after the Federal Emergency Management Agency (FEMA) withdrew an $80 million grant it gave the city to house illegal migrants.

The Trump administration claimed that it was concerned about "illegal activity" within the city's program when it withdrew the funds, according to The Hill. The withdrawal also came after Elon Musk alleged that the migrants were housed in "luxury hotels," which was paid for by FEMA.

The lawsuit, filed in Manhattan federal court, claimed that the funds were legal because they were congressionally appropriated and issued by FEMA's Shelter and Services Program.

“No lawful procedure permits Defendants—as they did here—to take back grant funds previously approved and paid without legitimate basis and without first following and complying with the steps required under the applicable rules, grant terms and conditions,” the complaint reads. “Defendants have acted lawlessly, but have attempted, after the fact, to mask this fact with a semblance of following procedure."

New York City Mayor Eric Adams also slammed the Trump administration for its withdrawal of the funds, which were removed directly from a city bank account. The funds were disbursed on Feb. 4 but withdrawn a week later.

“The $80 million that FEMA approved, paid and then rescinded — after the city spent more than $7 billion in the last three years — is the bare minimum our taxpayers deserve,” Adams said in a statement. “And that’s why we’re going to work to ensure our city’s residents get every dollar they are owed.”

The city is seeking a preliminary and permanent injunction and temporary restraining order that orders the Trump administration to return the $80 million, along with preventing the feds from taking any further money or withholding money related to the Shelter and Service Program grants.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.