Summary
- The Trump administration blocked $18 billion for NYC infrastructure.
- Funds intended for Hudson Tunnel and Second Avenue Subway projects.
- Funding paused over concerns about unconstitutional DEI policies.
Russ Vought, the director of the U.S. Office of Management and Budget, said on X that the Department of Transportation halted $18 billion in financing for the Hudson Tunnel Project and the Second Ave Subway on Wednesday to make sure the money is "not flowing based on unconstitutional DEI principles."
The Transportation Department said in a statement that these projects had been examined "to determine whether any unconstitutional practices are occurring." The CIA also pointed the finger at New York-based House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer.
“Thanks to the Chuck Schumer and Hakeem Jefferies [sic] shutdown, however, USDOT’s review of New York’s unconstitutional practices will take more time,”
the agency said.
“Without a budget, the Department has been forced to furlough the civil rights staff responsible for conducting this review.”
“This isn’t a functioning democracy any longer when - in the middle of a high stakes funding fight - the President illegally suspends federal projects in states run by Democrats as a way to punish the political opposition,”
he wrote.
The first government shutdown in seven years went into effect at midnight on Wednesday after Democrats voted down a bill to continue funding.
The White House has blamed Democratic leaders like Schumer and "radical Left lunatics" for the shutdown. Schumer and Jeffries, on the other hand, blamed Republican members and President Donald Trump, arguing that the financing plan needs to adequately address the "healthcare crisis."
Jeffries and Schumer have been approached by The Independent for comment.
The declaration from the Transportation Department comes days after Trump threatened to cut off federal funds to New York City if Zohran Mamdani, a democratic socialist who is leading the polls, were elected mayor this November.
“Remember, he needs the money from me, as President, in order to fulfill all of his FAKE Communist promises,”
Trump, a long-time former resident of New York, wrote Monday on Truth Social.
“He won’t be getting any of it, so what’s the point of voting for him?”
“He began with denial, where he said that there was no way we could win this race and that he would use every tool at his disposal to ensure that that was the case,"
Mamdani said.
Trump has long disparaged Mamdani, previously labeling him “radical” and a “communist lunatic.” Mamdani, when asked about the “communist” label by CNN on Monday, reiterated he is a democratic socialist.
“I think it reflects the fact that, whereas those critiques, whereas that identity would have been enough for Donald Trump in the past, now he doesn’t even want to use that, because he knows that the message of my politics is one that is connecting with New Yorkers across the five boroughs,”
Mamdani told CNN.
What projects in NYC are affected and their current status?
Construction of a new double-tube rail tunnel under the Hudson River, coupled with repairs to the North River Tunnels, cost $17.2 billion.
The current tunnels were badly damaged in 2012 when Superstorm Sandy impacted the area, making this infrastructure critical to the regional transit system, regional economy, and the tapestry of affordable access to communities across the Hudson River.
Federal funding for the project is already over $11 billion. While this project will take approximately 10 years to complete, it is currently on hold while it undergoes review.
The Gateway Development Commission, which oversees the project, has made no public action on the freeze in funding but has met with board members a short time ago. This project includes Phase 2 of the Q subway line expansion in Manhattan.