The Federal Emergency Management Agency has rescinded more than $80 million in funding to New York City, officials said Wednesday, escalating a dispute between the Trump administration and the nation's largest city over money meant to cover hotels for migrants.

A judge won't prevent the federal government from attempting to withhold tens of millions of dollars meant to cover hotel costs for migrants in New York.

Federal funds to reimburse the city for costs of the migrant crisis have been withdrawn from city bank accounts, City Comptroller Brad Lander said.

The Department of Homeland Security had warned that whoever was responsible for the payment to the New York City hotels should expect to be fired.

Officials at the Department of Homeland Security failed to offer details on how the four employees had violated any policies.

The Federal Emergency Management Agency (FEMA) has fired four employees over payments to house migrants in New York City, the Department of Homeland Security (DHS) said Tuesday. Department of Government Efficiency (DOGE) head Elon Musk on Monday sounded the alarm over the $59 million payment made last week by FEMA.