The Department of Justice has initiated a criminal investigation concerning the funding and oversight of New York City hotels functioning as shelters for migrants, as indicated by a federal subpoena directed to a Manhattan hotel.
On Wednesday, federal prosecutors issued a subpoena to the Hotel Chandler in Midtown, seeking details connected to the migrant shelter program along with “a list of full names of aliens currently residing at Hotel Chandler,” which includes nationality, dates of birth, and identification numbers.
The subpoena demanded testimony and evidence from the hotel in relation to “an alleged violation” of federal immigration laws. It required the hotel to provide the names of entities and individuals responsible for the “funding and management of the illegal immigrant/migrant shelter program,” along with any pertinent contracts or agreements.
It remains unclear why the Chandler, situated on East 31st Street and converted into a homeless shelter years ago, received a subpoena, as it does not currently operate as a shelter for migrants.
The investigation seems to focus, at least partly, on the administration and funding of hotels serving as shelters. However, the complete extent of the inquiry was not clear as of Wednesday, nor was it known if other hotels had also received subpoenas.
The grand jury subpoena was issued by the office of the U.S. attorney for the Southern District of New York. Nicholas Biase, a spokesman for the office, redirected inquiries to the Department of Justice in Washington. A representative there, however, declined to comment on what he referred to as “an ongoing criminal investigation,” stating he could not discuss the scope or details of the investigation.
As of Wednesday, New York City, which is providing shelter for approximately 43,000 migrants across the city, including numerous converted hotels, had not received a subpoena according to an official briefed on the situation who spoke on the condition of anonymity.
Liz Garcia, a spokesperson for Mayor Eric Adams, opted not to comment, stating, “We cannot comment on any sort of federal investigation.”
The Guardian was the first to report on Wednesday that a Manhattan hotel, which remains unnamed, had received a subpoena.
The city’s migrant shelters have faced significant criticism and scrutiny from the Trump administration, which has made New York City, the nation’s largest sanctuary jurisdiction, a target of its immigration enforcement efforts.
In its efforts to accommodate over 230,000 migrants who have sought shelter in the city since early 2022, the city has entered into multimillion-dollar contracts with more than 100 hotels. Republicans have persistently characterized the use of hotels as migrant shelters as an irresponsible expenditure of taxpayer funds.
Last month, the Trump administration abruptly recaptured $80 million in federal funds from the city’s accounts, which were intended to assist with expenses related to paying hotels for migrant sheltering.
In this action, the federal government specifically mentioned the Roosevelt Hotel in Midtown, which the city had transformed into its primary processing center for migrants. The Trump administration portrayed it as a refuge for migrant gangs. Shortly thereafter, the city announced plans to close the Roosevelt Hotel by June, citing a significant reduction in the number of migrants arriving in the city.
William K. Rashbaum contributed reporting, and Sheelagh McNeill contributed research.
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