In brief
The Trump administration has withheld $18 billion in funding for significant transit projects in New York and New Jersey, citing the ongoing government shutdown. This move specifically targets the Hudson River rail tunnel and the Second Avenue subway's expansion, with officials blaming Senate Democratic leader Chuck Schumer for the impasse. The funding hold reflects a broader conflict regarding diversity and equity principles. New York Governor Kathy Hochul criticized the administration’s stance at a press briefing, emphasizing the need for federal support in crucial infrastructure projects.
WASHINGTON (AP) — The Trump administration announced on Wednesday that it is holding back approximately $18 billion in funding for a new rail tunnel beneath the Hudson River, a key infrastructure project connecting New York and New Jersey, along with the expansion of the city’s Second Avenue subway due to the ongoing government shutdown.
White House budget director, Russ Vought, stated in a post on X that this action is based on a belief that the funding is grounded in what his administration perceives as unconstitutional diversity, equity, and inclusion (DEI) principles.
However, an unnamed administration official explained that the suspension is primarily a consequence of the government shutdown, which began at midnight. As a result, Transportation Department employees responsible for disbursing funds for these projects have been furloughed, leading to the withholding of the financial support.
This funding hold appears to strategically target Senate Democratic leader Chuck Schumer from New York, whom the White House blames for contributing to the shutdown. In a 2023 interview, Schumer expressed enthusiasm about the rail tunnel project, noting the excitement shared with then-President Joe Biden as they discussed it while en route to the project site.
New York Governor Kathy Hochul, a Democrat, voiced her disappointment at a news conference, stating, 'The bad news just keeps coming.' She accused the administration of interposing cultural disputes over the essential needs of the state's infrastructure. 'We’ve done our part, we’re ready to build, it’s underway,' Hochul asserted, underscoring the urgent requirement for federal support.
The Hudson River rail tunnel project has faced numerous delays and funding challenges over the years, aimed at alleviating congestion in a century-old tunnel that is crucial for commuter and Amtrak services stretching along the East Coast. The Second Avenue subway was initially conceptualized in the 1920s and has encountered similar funding struggles, with recent attempts focusing on extending the line into East Harlem.
