LOUISBURG, N.C. (WNCN) — A North Carolina sheriff says $59 million FEMA clawed back from New York City for sheltering migrants should go to Hurricane Helene survivors in the mountains.

The late September hurricane caused historic flooding, over 100 deaths with 74,000 homes damaged in western North Carolina.

The Federal Emergency Management Agency has clawed back more than $80 million from New York City, officials said Wednesday, escalating a dispute between the Trump administration and the nation’s largest city over money for sheltering migrants.

Gone is a $59 million grant that the administration challenged earlier in the week and another award for $21.5 million, City Comptroller Brad Lander said.

On Monday, before the funds were officially taken back from New York City, Franklin County Sheriff Kevin White said the money should go to North Carolina residents.

“FEMA should IMMEDIATELY direct those funds toward housing US taxpayers in Western North Carolina,” White wrote on social media. “These folks have been in dire straits for months.”

The grants were applied for and awarded during the administration of Democratic President Joe Biden but were not disbursed until last week, the city said.

Soon after, Trump adviser Elon Musk flagged $59 million in payments, writing on X that his Department of Government Efficiency had discovered the money was used to house migrants in “luxury hotels.” Musk gave no evidence to support his claim.

Sheriff White on Monday echoed the notion that immigrants had lived for free in “luxury hotels.”

“Recent audits by DOGE have uncovered that FEMA sent $59 Million to New York City Luxury Hotels for the purposes of housing illegal aliens,” White wrote.

In the last two years, New York City has leased several budget hotels and other vacant buildings, turning them into migrant shelters.

FEMA’s acting administrator said in court documents filed Tuesday that the money was being clawed back over concerns about “illegal activities” at a hotel.

Most of the former hotels leased by the city are occupied by families with children. The Associated Press reported that none would be considered “luxury” by most traveler standards.