Rendering courtesy of the MTA
President Donald Trump’s administration announced it is withholding $18 billion for two critical New York City infrastructure projects, the Second Avenue Subway and the Hudson River Gateway Tunnel, citing the state’s “unconstitutional DEI principles.” In a statement, Transportation Secretary Sean Duffy said funds for the two projects are frozen until the department can review what it calls “discriminatory, unconstitutional contracting processes.” The move from Trump came hours after the federal government shutdown.
The latest federal funding freeze comes after Trump issued several executive orders targeting diversity, equity, and inclusion (DEI) programs earlier this year. On Tuesday, DOT issued an interim final rule that forbids “race or sex discrimination in the awarding of contracts,” but which has not gone into effect yet.
“USDOT issued letters to New York to inform them that their two mega projects – the 2nd Avenue Subway and Hudson Tunnel – are under administrative review to determine whether any unconstitutional practices are occurring,” Duffy said in a statement.
“The Department is focusing on these projects because they are arguably the largest infrastructure initiatives in the Western Hemisphere, and the American people want to see them completed quickly and efficiently.”
The DOT’s hasty announcement on Wednesday is likely intended to pressure Democrats over the partial government shutdown, as Reuters reports. Republicans currently control the House, Senate, and the White House.
New York continues to be targeted by Trump. Earlier this week, it was reported that New York would lose an extra $100 million in counterterrorism funding from the Department of Homeland Security, following a previous cut of $87 million.
In response, Gov. Kathy Hochul called the latest funding clawback “political payback and an attack on New York and its residents.”
“Donald Trump has been clear: he is intent on using his reckless government shutdown to hurt the American people. 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,” Hochul said in a statement. “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.”
Legal action from New York and New Jersey is likely forthcoming.
“I will not sit idly by while Donald Trump defunds public safety and lets our infrastructure crumble,” Hochul said. “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.”
Former President Joe Biden was a big supporter of both the extension of the Q train along Second Avenue into Harlem, awarding the project $3.4 billion in federal funds in 2023, and bringing the federal contribution for the Gateway Project up to $12 billion.
After many years of political feuds and funding delays, including during Trump’s first term, the $16 billion project, which involves replacing two aging tunnels under the Hudson River that were damaged during Hurricane Sandy, was formally approved by the federal government in 2021 and construction began in 2023.
The 100-year-old tunnel is a critical part of the economy. If it were to shut down for just one day, it would cost the nation’s economy roughly $100 billion, as 6sqft previously reported.
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