An armed man allegedly set off an incendiary device outside the Federal Plaza in Lower Manhattan on Monday morning, sparking a terrorism investigation after authorities say he also ignited fireworks and threatened people with airsoft rifles.

The unidentified suspect allegedly started the fire outside 26 Federal Plaza at about 8:30 a.m. while pulling a cart loaded with two long guns, additional fireworks, and other items, according to police and law enforcement sources.

Federal officers quickly swarmed the scene and took the suspect into custody without further incident.

“This morning an individual deployed an incendiary device outside of 26 Federal Plaza,” the FBI confirmed to Fox News in a statement.

“The individual has been taken into custody and the FBI New York Joint Terrorism Task Force is investigating the incident.”

NOW: Moment of EXPLOSION that went off outside of the 26 Federal Plaza in NYC around 8:30am this morning, with Immigration agents and FBI Rushing out guns drawn and FPS apprehending the suspect. Sidewalk has been shut down and building evacuated.

NYPD on scene confirmed it was… pic.twitter.com/HcGg0Unj2a

— Oliya Scootercaster 🛴 (@ScooterCasterNY) July 20, 2026

Authorities said the suspect allegedly waved airsoft rifles at passersby before he was arrested outside the busy federal complex, which houses multiple federal agencies.

One person suffered minor injuries during the incident and was transported to a nearby hospital, according to sources.

Investigators are now working to determine the suspect’s motive as the FBI’s New York Joint Terrorism Task Force leads the investigation into the attack at Federal Plaza.

Download the FREE Trending Politics App to get the latest news FIRST >>