Overview

• In an Oval Office exchange, President Trump said the $16 billion Hudson River Tunnel effort championed by Sen. Chuck Schumer is "terminated" and grouped it with other Democratic-backed projects he plans to cut.
• OMB Director Russell Vought previously announced a hold on roughly $18 billion for New York infrastructure, citing "unconstitutional" DEI principles tied to contracting policies.
• Transportation officials said reimbursements are on hold pending a compliance review that has been slowed by furloughs during the partial government shutdown.
• Project representatives and news outlets report no formal notice of permanent defunding, and the Gateway Development Commission says it has received no new federal guidance beyond last month’s pause.
• Work is proceeding at multiple sites using non-federal money, as New York and New Jersey leaders vow legal and political challenges, noting prior commitments of nearly $4 billion from the states and about $7 billion in federal grants finalized in 2024.