By every objective measure, New York City’s migrant crisis has ebbed.
Bus loads of migrants stopped streaming into the city after the Biden administration moved to limit border crossings, reversing earlier policies, and the federal government under President Trump has vowed to significantly step up deportations. Nearly 80% of the more than 220,000 migrants who arrived since 2022 have left the city’s shelter system.
So why did Mayor Eric Adams just commit to spend another $991 million of taxpayer money for 14,000 hotel rooms for migrants through June 2026? The city has agreed to pay for the same number of rooms as in the prior deal, whether or not they are filled, and also added an option to extend the deal another three years. The city pays an average of $156 per night for the rooms.
The move merits scrutiny, not least because it doubles down on an expensive solution at a moment when the reality on the ground is changing (though the city continues to host about 49,000 migrants). The arrangement — managed by a nonprofit arm of the Hotel Association of New York City — also serves to keep a lucrative revenue stream flowing to Adams’ political allies as he gears up for a competitive primary challenge in June. Adams, who took off last week to address what aides described as personal health issues, nonetheless found time to meet with the head of the Hotel and Gaming Trades Council, among other union leaders, to discuss his reelection prospects, Politico reported.
The Council and Comptroller should look closely at the deal, including any clawback provisions that would save taxpayers money if the rooms are going unused. And the administration should scale back on the number of rooms for any future extensions with HANYC. The trade group has taken on a leading role in the city’s migrant crisis — serving mainly as a middleman by funneling city rent payments to privately-owned hotels where migrants have been housed to comply with the city’s right-to-shelter mandate.
A July analysis by city Comptroller Brad Lander found that the city was paying a reasonable rate for the hotel rooms. It found that the migrant hotel rooms cost more than regular city shelter beds but less than other, temporary emergency migrant shelters the city has now begun closing. But critics have raised questions about whether the Hotel Association enjoys a virtual monopoly over migrant shelters.
The migrant crisis so far has cost the city almost $7 billion. The Adams administration has budgeted another $2.7 billion for the next fiscal year that starts in July, but should be looking to reduce that number rather than locking in long-term deals for rooms the city may not need.
