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1h ago

Trump Administration Freezes $18 Billion for NYC Hudson Tunnel and Second Avenue Subway

DOT says disbursements await a review that cannot proceed because key staff are furloughed.

Construction on the new JPMorgan Chase & Co. headquarters at 270 Park Ave. in New York, US, on Wednesday, Aug. 20, 2025. The biggest US bank has been building a massive new skyscraper on Park Avenue, packed with amenities, for its headquarters, which will house about 10,000 employees. Photographer: David Dee Delgado/Bloomberg
The first phase of the Second Avenue Subway in New York opened in 2017. The Transportation Department said Wednesday it is withholding funds for the second phase, blaming the Democratic minority leaders in the House and Senate for the partial government shutdown that began Wednesday.
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Office of Management and Budget Director Russ Vought said the administration would withhold $18 billion for New York infrastructure projects on Day 1 of the government shutdown.

Overview

  • OMB Director Russ Vought announced on X that funding is on hold to ensure money is not used based on what the administration calls unconstitutional DEI principles.
  • The pause targets the Hudson Tunnel Project and the Second Avenue Subway, two long-planned projects with substantial federal commitments secured in recent years.
  • Transportation Secretary Sean Duffy said DOT will withhold payments until an administrative review of alleged unconstitutional practices is completed.
  • An administration official said shutdown furloughs include employees who process reimbursements, so payments cannot be made during the review pause.
  • News outlets note the move is widely viewed as aimed at New York Democratic leaders and raises questions about the legal and practical ability to delay already committed funds.