The New York City comptroller’s office, which first noticed the missing money, said that the Federal Emergency Management Agency had unilaterally taken the funds from the city’s accounts.
To be clear: this isn't the "we stopped paying promised grant money" but is literally the federal government yanking money out of an NYC bank account.
I too like having a service provide be intentionally under funded, allowing essential services to be running super lean so that they can't function effectively. It's very efficient