Eric Adams Files Lawsuit Against President Trump Over $80 Million Fund Dispute
New York City Mayor Eric Adams has taken legal action against President Donald Trump, claiming that his administration unlawfully removed $80 million from a city bank account. The lawsuit, filed on Friday, alleges that Trump’s team violated federal laws, grant terms, and regulations by reversing a previously approved fund transfer.
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The Lawsuit: Eric Adams Takes Trump to Court
How It All Started
The dispute began when the Trump administration allegedly reversed the transfer of $80.5 million in federal funds already approved by Congress. The money was intended for immigrant services and was set to be deposited into a New York City Hall bank account before it was unexpectedly withdrawn. According to Politico, the lawsuit claims that the funds were removed following a public threat made by Elon Musk on his social media platform X (formerly Twitter). Musk reportedly suggested that the funds should be taken away, and shortly after, the transfer was reversed.
City attorneys argue that this move was unlawful and politically motivated, violating multiple federal statutes and agreements. They are now seeking a court order to restore the money and prevent future withdrawals of city-allocated federal funds.
Allegations Against Trump’s Administration
In addition to the unauthorized fund removal, the lawsuit accuses the Trump administration of misrepresenting their intentions in a separate legal case regarding the federal government’s power to freeze state-designated funds.
New York City officials argue that the Trump administration’s actions were unprecedented and unlawful, setting a dangerous precedent for federal overreach. The complaint states that no previous president has ever reversed an approved transfer of federal funds in this manner.
Corporation Counsel Muriel Goode-Trufant wrote in a complaint that the Trump administration has acted flawlessly and used the move as a cover up for following procedure. She additionally states that the federal government had no permission to take back the funds after invoking a provision through federal banking lawsuits to reverse payment.
“The statements could not be clearer: Defendants’ purpose for grabbing back the funds was not related to the City’s specific expenditures at all, but to thwart the very purpose of the SSP,”
What Happens Next?
Legal Challenges and Expected Outcomes
The lawsuit is expected to move quickly through the courts, as city officials push for an immediate restoration of funds. Legal analysts suggest that Adams has a strong case, given that the funds were approved by Congress and the removal lacks clear legal justification.
If the court rules in favor of Adams, the Trump administration may be required to return the funds immediately and face restrictions on similar actions in the future. However, if Trump’s legal team can justify the withdrawal, it could grant the federal government greater control over state-designated funding going forward.