In brief
The Trump administration announced a hold on approximately $18 billion allocated for critical infrastructure projects including a new rail tunnel under the Hudson River and the Second Avenue subway expansion in New York. The funding suspension is linked to the recent government shutdown and is seen as a politically motivated strike against Senate Democratic Leader Chuck Schumer. Governor Kathy Hochul criticized the move, citing cultural politics as an obstacle to the partnership needed for infrastructure development.
WASHINGTON (AP) — The Trump administration stated on Wednesday that it was placing a hold on roughly $18 billion meant to fund a new rail tunnel beneath the Hudson River connecting New York and New Jersey, as well as the city’s extended Second Avenue subway project. This decision comes amid a government shutdown.
White House budget director, Russ Vought, indicated in a post on X that the hold was imposed because the funding was perceived as tied to unconstitutional DEI principles, alluding to the controversy surrounding diversity, equity, and inclusion.
A government official, who requested anonymity, explained that the shutdown caused the Transportation Department employees responsible for funding these projects to be furloughed, thus leading to the withholding of funds.
The suspension appears to be aimed at Senate Democratic Leader Chuck Schumer of New York, with the White House assigning blame to him for the government shutdown.
In a 2023 interview with The Associated Press, Schumer recounted his excitement over the rail tunnel project, stating that it was a focal point of conversations with then-President Joe Biden en route to the site.
New York Governor Kathy Hochul cited the funding halt as another layer of bad news during a press briefing regarding the federal shutdown, arguing that the administration is using culture wars as an excuse against the needs of citizens.
That’s what a partnership with Washington looks like as we’re standing here. We’ve done our part, we’re ready to build, it’s underway, she said, accusing the federal government of prioritizing its interpretations over essential infrastructure needs.
The Hudson River rail tunnel is a long-awaited project intended to alleviate congestion on a century-old tunnel that handles thousands of Amtrak and commuter trains daily, reflecting a larger ripple effect on travel along the East Coast.
The Second Avenue subway project, initially conceived in the 1920s, has faced numerous delays, with the first section opening on January 1, 2017. The Metropolitan Transportation Authority is now pushing forward with plans to extend the line into East Harlem.
