New York ? New Yorkers had a few choice words Thursday for the Department of Homeland Security, following news that the city’s anti-terrorism funding is being sharply reduced. “A knife in the back” and “declaring war on New York,” politicians here called it. A congressman said the department “doesn’t know its rear end from its elbow.”

Using a new risk-based allotment, Homeland Security officials increased the number of cities eligible for anti-terrorism grants this year and bolstered funding for cities like Charlotte, N.C., Omaha, Neb., and Louisville, Ky. In the process, the grants to New York and Washington – the targets on Sept. 11 – will be cut by 40 percent, to $124 million and $46.5 million respectively.

The announcement earlier this week angered residents in both cities, but emotions were particularly raw in New York, where the losses from Sept. 11 remain a daily preoccupation. The New York Daily News summed up the situation with the headline “Feds to City: Drop Dead,” and demanded the resignation of Homeland Security chief Michael Chertoff.

In response to the complaints, DHS released a statement, titled “Setting the Record Straight,” that argued New York has received the lion’s share of the anti-terrorism funds – 19 percent – since the program was created. That is twice the amount given to the second-place recipient, Los Angeles.

The statement also said Homeland Security was forced to reduce its overall 2006 anti-terror funding by $125 million because of smaller congressional appropriations.