NEW YORK, N.Y. – A dispute over federal counterterrorism money erupted Tuesday after New York Gov. Kathy Hochul accused President Donald Trump of “defunding the police” by withholding $87 million she says the federal government promised the state.
The Department of Homeland Security fired back, saying New York is already sitting on more than $300 million in unspent federal homeland security funding. DHS Secretary Markwayne Mullin amplified that response Tuesday, accusing Hochul of “manufacturing a funding crisis.”
The clash centers on federal homeland security grants used for police, intelligence, bomb squads, emergency preparedness and counterterrorism operations in New York City and across the state.
Hochul Says New York Is Still Owed $87 Million
Hochul appeared with New York City Mayor Zohran Mamdani and law enforcement officials Tuesday to demand that the Trump administration release the remaining money.
“Donald Trump is defunding the police,” Hochul said.
According to the New York City Mayor’s Office transcript, New York says the Trump administration initially cut $187 million from its federal counterterrorism funding. About $100 million was later restored, leaving the $87 million now at the center of the dispute.
- Hochul says New York is still owed $87 million in federal counterterrorism funding.
- DHS says New York has more than $300 million in previously awarded federal homeland security money that remains unspent.
- The money supports programs including bomb squads, intelligence operations, emergency response and police training.
The governor said the missing $87 million affects law enforcement and emergency operations from New York City to communities across the state.
Why does Hochul say Trump is “defunding the police”?
Hochul says withholding the $87 million affects programs supporting the NYPD, FDNY, National Guard, bomb squads, intelligence analysts and police and sheriff’s departments elsewhere in New York.
DHS Says New York Has Hundreds of Millions It Hasn’t Spent
The Trump administration disputes Hochul’s description of the funding fight.
A FEMA spokesperson told CBS News New York that New York has more than $300 million in unspent federal homeland security funding.
“Governor Hochul is manufacturing a funding crisis despite New York sitting on more than $300 million in UNSPENT federal homeland security funding,” the spokesperson said.
Mullin repeated the administration’s argument in a social media post, saying New York has historically received allocations above federal risk-based formulas.
“Why is New York demanding even more taxpayer money when it has failed to spend hundreds of millions of dollars already provided to protect its communities?” Mullin wrote.
The administration also says New York is slated to receive more than $200 million in Homeland Security Grant Program funding for fiscal 2026, with the funding expected to be awarded later this month.
How much money are the two sides arguing over?
Hochul is seeking $87 million she says remains from previously promised counterterrorism funding. DHS, meanwhile, says New York has more than $300 million in other federal homeland security funds that have not yet been spent.
Counterterrorism Grants Pay for Police and Emergency Operations
New York officials say the disputed funding helps maintain 12 bomb squads statewide and supports hazardous-material teams, canine units, tactical teams, cybersecurity operations and intelligence sharing.
Mamdani said the money is also important because New York City remains a major terrorism target and requires specialized resources to prepare for potential attacks.
The current dispute follows litigation over earlier federal homeland security grant reductions. New York Attorney General Letitia James announced in May that the Trump administration had dropped an appeal after a federal court blocked earlier reductions affecting New York and other states.
What does DHS say New York should do with the existing money?
DHS says New York should use the more than $300 million in previously awarded homeland security funding that the department says remains unspent. Hochul is separately demanding release of the additional $87 million she says was promised to the state.
The dispute puts two competing funding figures at the center of New York’s counterterrorism debate: the $87 million Hochul says Washington still owes and the more than $300 million DHS says the state has yet to spend.
Sources: Secretary Markwayne Mullin, DHS statement; New York City Mayor’s Office, Sept. 1 press conference transcript; CBS News New York, DHS/FEMA response and New York funding figures; New York Attorney General, federal grant litigation
