U.S. freezes $18 billion in funding for NYC tunnel, subway projects amid shutdown

The Trump administration has halted roughly $18 billion in federal funding tied to two of New York City’s largest transit infrastructure projects — the long-delayed Hudson River rail tunnel and the expansion of the Second Avenue subway. 

As reported by Associated Press, White House budget director Russ Vought said on social media that the funding pause stemmed from “unconstitutional DEI principles.” However, administration officials speaking on background cited the federal government shutdown, which has furloughed Transportation Department staff responsible for reviewing and reimbursing project costs.

The U.S. Transportation Department confirmed civil rights staff had been furloughed, saying in a statement: “Without a budget, the Department has been forced to furlough the civil rights staff responsible for conducting this review.”

The freeze comes as political tensions sharpen. The White House has sought to tie the funding dispute to Senate Majority Leader Chuck Schumer (D-N.Y.), a vocal supporter of the rail tunnel project. Gov. Kathy Hochul (D-N.Y.) criticized the move, saying the administration is putting “culture wars” ahead of national infrastructure needs, AP reported.

The Hudson River tunnel, first proposed more than a decade ago, is seen as critical to easing pressure on a 110-year-old existing tunnel that carries hundreds of Amtrak and commuter trains daily between New York and New Jersey. Meanwhile, the long-promised Second Avenue subway line is preparing for its second phase of construction into East Harlem.

The suspension of funds casts new uncertainty on both projects, which are considered vital to maintaining the reliability of passenger rail service across the Northeast Corridor and to modernizing New York City’s subway system.

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