Trump Administration Halts $18B for NYC Rail, Subway Projects/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Trump administration has paused $18 billion in federal funding for New York City’s Hudson River rail tunnel and Second Avenue subway expansion, citing both the government shutdown and objections to DEI-related provisions. Officials said furloughed Transportation Department staff cannot process reimbursements. The freeze has drawn sharp criticism from New York leaders, including Gov. Kathy Hochul.
NYC Funding Freeze Quick Looks
- $18 billion in funding frozen for two major projects:
- Hudson River rail tunnel between New Jersey and Manhattan
- Second Avenue subway expansion into East Harlem
- White House cites DEI concerns and shutdown as reasons for pause
- Transportation Department staff furloughed, halting reimbursement processing
- Move viewed as a political shot at Sen. Chuck Schumer
- Gov. Kathy Hochul condemns freeze, calling it “culture wars over needs”
- Hudson tunnel aims to replace 110-year-old structure carrying Amtrak and commuter trains
- Second Avenue subway project first proposed in 1920s, long plagued by delays
- Funding halt adds pressure as shutdown widens economic impacts
Deep Look
Trump Administration Freezes $18 Billion for New York Infrastructure Amid Government Shutdown
WASHINGTON — The Trump administration has suspended $18 billion in federal funding earmarked for critical New York City infrastructure projects, including a new Hudson River rail tunnel and the Second Avenue subway expansion, officials announced Wednesday. The decision comes as the U.S. government shutdown continues to disrupt services nationwide and intensifies political battles over spending priorities.
White House Cites Shutdown and DEI Concerns
Russ Vought, White House budget director, said in a post on X that the freeze reflected the administration’s stance against what it considers “unconstitutional DEI principles” — a reference to diversity, equity, and inclusion policies tied to federal funding.
But an administration official speaking on background emphasized that the shutdown itself forced the suspension, since Transportation Department staff responsible for reimbursements were furloughed. Without active staff, the federal government cannot process payments to contractors already working on the projects.
The decision is seen by many as a politically charged maneuver aimed at Senate Democratic leader Chuck Schumer of New York, who the White House blames for the budget deadlock that triggered the shutdown.
Political Fallout in New York
The freeze quickly drew backlash from New York officials. Governor Kathy Hochul, addressing reporters at a press conference on the shutdown, blasted the decision:
“The bad news just keeps coming. They’re trying to make culture wars be the reason why. We’ve done our part, we’re ready to build, and now Washington has decided their politics matter more than our needs.”
Schumer has long championed the Hudson tunnel project, once describing himself and then-President Biden as “giddy” over its progress. In a 2023 AP interview, Schumer said he and Biden spent an entire motorcade ride discussing it during a site visit.
Hudson River Rail Tunnel: A Long-Delayed Lifeline
The Hudson River tunnel, more than a century old, is one of the most critical pieces of rail infrastructure in the United States. It carries hundreds of Amtrak and commuter trains daily between New Jersey and Manhattan, with passengers traveling along the Northeast Corridor from Boston to Washington, D.C.
Its deterioration has long threatened catastrophic delays, with experts warning that any extended shutdown of the current tunnel would severely disrupt commerce and daily commuting across the East Coast.
The new tunnel has been planned for years, with costs and funding responsibilities shifting back and forth between federal and state leaders. Advocates see it as vital not only for the New York metro area but for national economic stability.
Second Avenue Subway: A Century-Old Promise
The Second Avenue subway is another infamous New York City project with nearly a century of false starts. First proposed in the 1920s, it has long been described as a political and financial mirage.
The first section, running through the Upper East Side of Manhattan, finally opened on January 1, 2017, after decades of planning and partial construction. The second phase, now under development, aims to extend the line into East Harlem, addressing long-standing transit inequities in underserved neighborhoods.
The Metropolitan Transportation Authority (MTA) had already been preparing to ramp up construction with federal support, but the funding freeze may stall progress.
Broader Context: Shutdown and Federal Power Plays
This funding halt underscores how the federal government shutdown is affecting more than just federal employees. Major infrastructure projects — often requiring complex state-federal coordination — are now caught in the crossfire of Washington’s budget battles.
It also highlights Trump’s wider effort to reshape federal spending through cultural and political filters. By framing infrastructure funding as tied to DEI principles, the administration has injected cultural politics into an area historically dominated by bipartisan support.
Meanwhile, the fate of these projects remains uncertain. While funding may eventually resume once the shutdown ends, officials warn that delays can drive up construction costs, complicate contracts, and jeopardize long-term completion schedules.
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