The Federal Emergency Management Agency (FEMA) has launched a review of organizations providing shelter and aid to migrants, raising concerns that they may have violated a law commonly used to prosecute smugglers.
News of the review comes a day after the Department of Justice opened a separate criminal investigation into the funding and management of migrant shelters in New York City, including hotels operating as temporary housing.
In a letter dated Tuesday and obtained by The Associated Press, Cameron Hamilton, acting administrator of the Federal Emergency Management Agency (FEMA), stated that the Department of Homeland Security had "significant concerns" about the use of federal grants distributed under the Shelter and Services Program.
The letter instructed grant recipients to provide names and contact information of migrants served, as well as a "detailed and descriptive list of specific services provided" within 30 days, with funding being withheld during the review.
While the letter does not explicitly threaten prosecution, it references U.S. Criminal Code Section 1324, a statute that makes it a felony to transport or harbor individuals who have entered the country illegally. Grant recipients were also required to sign sworn statements affirming that they have no knowledge of their organizations violating the smuggling law.
FEMA's Shelter and Services Program allocated $641 million in the 2024 fiscal year to state and local governments and organizations aiding migrants, including New York City, Philadelphia, Chicago, Denver, and entities such as the United Way of Miami and several branches of Catholic Charities.
On Wednesday, the Department of Justice issued a grand jury subpoena to at least one Manhattan hotel, the Hotel Chandler, requesting information related to the city's migrant shelter program, according to a report by The New York Times. The subpoena asks for a list of all migrants residing at the hotel, including their nationalities, birth dates, and identification numbers. It also seeks information on entities and individuals responsible for the "funding and management" of the shelter program, as well as any related contracts or agreements.
It is unclear why Hotel Chandler was targeted, as it was converted into a homeless shelter years ago and is not currently operating as a migrant shelter. The scope of the investigation, including whether other hotels have received subpoenas, remains uncertain. New York City, which is sheltering approximately 43,000 migrants, has not received a subpoena, according to an official briefed on the matter.
The Trump administration has been critical of the city's use of hotels as shelters, arguing that it represents wasteful spending. Last month, the federal government withdrew $80 million in funds to New York City previously allocated to cover some of the costs associated with sheltering migrants in hotels, which lead to a countersuit by the Adams' administration claiming that the funds were rescinded without notice or due process, describing the action as an unlawful "money grab."
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