Trump administration halts $18 billion in New York infrastructure funding amid government shutdown

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New York Construction News staff writer

The Trump administration on Wednesday announced a pause on $18 billion in federal funding for major New York transit projects, citing the government shutdown and concerns over “unconstitutional practices” in contracting.

A funding freeze affects construction of a rail tunnel under the Hudson River linking New York City and New Jersey, as well as the extension of Manhattan’s Second Avenue subway. A $300 million disbursement for the Second Avenue Subway had been scheduled but cannot be processed until the Department of Transportation completes its administrative review.

White House budget director Russ Vought said on X that the suspension was necessary because the projects were allegedly influenced by unconstitutional principles. The Transportation Department added that the government shutdown has forced it to furlough civil rights staff responsible for the review, delaying completion.

“Obstructing these projects is stupid and counterproductive because they create tens of thousands of great jobs and are essential for a strong regional and national economy,” Senate Democratic leader Chuck Schumer said on X.

At a news conference in New York City, Gov. Kathy Hochul criticized the federal action.

“Donald Trump has been clear: he is intent on using his reckless government shutdown to hurt the American people,” Hochul said. “In just 24 hours, his administration has defunded New York’s law enforcement and counterterrorism efforts and halted $18 billion in funding from critical infrastructure projects in New York City.

“This is political payback and an attack on New York and its residents, and it puts every family across our state in harm’s way.

“Every New Yorker should be outraged. From the construction worker who could lose their job, to the commuter stuck on a delayed train, to the families who rely on brave law enforcement officers to keep them safe. I will not sit idly by while Donald Trump defunds public safety and lets our infrastructure crumble. We will use every tool available to us to restore this funding and ensure that these critical infrastructure projects get built and keep every New Yorker safe.”

The Hudson River tunnel, decades in the making, is intended to relieve congestion on the century-old rail line connecting New York and New Jersey. Hundreds of Amtrak and commuter trains pass through the tunnel daily, and delays can ripple along the East Coast.

The Second Avenue subway, first planned in the 1920s, opened its first section in 2017. The MTA is working to extend the line into East Harlem.

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