The Trump administration has announced a suspension of approximately $18 billion in federal funding for two major New York City infrastructure projects: a new rail tunnel beneath the Hudson River and an extension of the Second Avenue subway. The decision comes amid a government shutdown that began Wednesday.
White House budget director Russ Vought stated on X that the administration’s move was due to concerns that the spending relied on “unconstitutional diversity, equity and inclusion principles.” The Department of Transportation said it had been reviewing potential unconstitutional practices related to these projects but furloughed staff as a result of the shutdown.
Senate Democratic leader Chuck Schumer of New York criticized the funding freeze, saying, “Obstructing these projects is stupid and counterproductive because they create tens of thousands of great jobs and are essential for a strong regional and national economy,” according to his post on X.
John McCarthy, policy chief and spokesperson for the Metropolitan Transportation Authority (MTA), responded to the announcement by stating, “For now, it looks like they’re just inventing excuses to delay one of the most important infrastructure projects in America.”
At a news conference in New York City, Governor Kathy Hochul commented on the federal government’s actions. “The bad news just keeps coming,” she told reporters. She added, “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. And now we realize that they’ve decided to put their own interpretation of proper culture ahead of our needs, the needs of a nation.”
The Hudson River rail tunnel project aims to address congestion in an aging tunnel connecting New York and New Jersey—a route used daily by hundreds of Amtrak and commuter trains carrying hundreds of thousands of passengers along the busy Northeast Corridor between Boston and Washington.
Thomas Prendergast, CEO of the Gateway Development Commission overseeing the tunnel project, said his agency remains “focused on keeping the project on scope, schedule and budget.” The commission did not provide details about how long-term plans might be affected by this funding suspension.
Political ramifications have also emerged in neighboring New Jersey ahead of its gubernatorial election. Democratic nominee Rep. Mikie Sherrill pledged on X to challenge any delays legally if elected governor: “I would fight this tooth-and-nail and sue the Trump administration to finish this critical, job-creating infrastructure project to reduce congestion and improve quality of life in New Jersey.” Her Republican opponent Jack Ciattarelli’s campaign attributed responsibility for the current situation to Sherrill’s performance as congresswoman.
The Second Avenue subway expansion—first proposed nearly a century ago—has seen sporadic progress over decades. The first section opened in 2017; work continues toward extending service into East Harlem.
