In brief
The Trump administration announced on Wednesday that it is freezing about $18 billion meant for the construction of a new rail tunnel beneath the Hudson River and the expanded Second Avenue subway project in New York City. The White House cited a belief that the funding is based on unconstitutional diversity, equity, and inclusion (DEI) principles. The decision comes during an ongoing government shutdown, which has furloughed employees responsible for processing the funds. New York Governor Kathy Hochul criticized the hold, asserting that it places political interpretations above the needs of the nation concerning critical infrastructure projects.
WASHINGTON (AP) — The Trump administration said Wednesday that it was putting a hold on roughly $18 billion to fund a new rail tunnel beneath the Hudson River between New York and New Jersey as well as the city’s expanded Second Avenue subway project due to the government shutdown. White House budget director Russ Vought announced via a post on X that the funding was halted because the administration believes it is “based on unconstitutional DEI principles,” referencing the controversial aspects of diversity, equity, and inclusion. An anonymous administration official confirmed that the funds were being withheld as the Transportation Department employees responsible for handling reimbursements are currently furloughed. This suspension of funds is perceived as a strategy to target Senate Democratic leader Chuck Schumer of New York, whom the White House is blaming for the shutdown. Both Schumer and President Biden had expressed enthusiasm for the rail tunnel project, which aims to alleviate congestion in an aging tunnel that has been in operation for over a century. In a statement during a news conference regarding the shutdown, New York Gov. Kathy Hochul expressed her frustration, stressing that the situation highlights a troubling prioritization of political agenda over urgent infrastructure needs, saying, “The bad news just keeps coming.” The delay comes as the Second Avenue subway project, a long-term vision dating back to the 1920s, continues to experience its share of funding and construction hurdles.
