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26m ago

White House Freezes $18 Billion for NYC Gateway Tunnel and Second Avenue Subway Over DEI Review

USDOT says reimbursements are paused pending an administrative review stalled by shutdown furloughs.

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.
Russell Vought, Office of Management and Budget director, listens as he addresses members of the media outside the West Wing at the White House in Washington, Monday, Sept. 29, 2025, in Washington. (AP Photo/Evan Vucci)
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.

Overview

  • OMB Director Russ Vought announced the hold hours after the government shutdown, naming the Hudson Tunnel Project and the Second Avenue Subway.
  • The Transportation Department says it is reviewing whether DBE participation goals and other contracting practices violate constitutional limits under newly issued guidance.
  • USDOT says no reimbursements can be processed during the review, including a $300 million payment tied to the Second Avenue Subway.
  • The freeze puts at risk major prior federal commitments, including roughly $6.9 billion for Gateway and $3.4 billion for the Second Avenue Subway.
  • New York leaders denounced the move as political retaliation and signaled legal and political responses, as the administration blamed Democratic leaders for delays.