Federal Government Freezes $18 Billion in New York City Infrastructure Projects

The action affects construction on the Second Avenue Subway in Manhattan and the new Hudson Tunnel for trains in and out of New York’s Pennsylvania Station.

Office of Management and Budget Director Russell Vought (C), joined by House Speaker Mike Johnson (R-La.) (L), Senate Majority Leader John Thune (R-S.D.) (2nd L), and Vice President JD Vance (R), speaks at the White House on Sept. 29, 2025. Madalina Kilroy/The Epoch Times

The federal government has frozen billions in funding for construction projects in New York City.

“Roughly $18 billion in New York City infrastructure projects have been put on hold to ensure funding is not flowing based on unconstitutional DEI principles,” Russ Vought, director of the Office of Management and Budget (OMB), wrote on X.

In a subsequent post, he wrote that the funding applied “specifically, [to] the Hudson Tunnel Project and the Second Ave Subway.”

The U.S. Department of Transportation (DOT) later stated on X that the projects’ funding was “under administrative review to determine whether any unconstitutional practices are occurring.”

The department also wrote that it would not be able to reimburse any expenses already incurred, including “a $300 million disbursement for the 2nd Avenue Subway.”

The projects in question are in New York City, which is represented by Senate Minority Leader Chuck Schumer (D-N.Y.) and House Minority Leader Hakeem Jeffries (D-N.Y.), the latter of whom is from New York’s Eighth Congressional District, covering southeastern Brooklyn.

Schumer and Jeffries are in a dispute with President Donald Trump and Republican congressional leaders over funding the federal government, which shut down on Oct. 1.

“Thanks to the Chuck Schumer and Hakeem Jeffries shutdown, however, USDOT review of New York’s unconstitutional practices will take more time,” the department’s statement reads.

Jeffries issued a statement criticizing the decision and what he called Vought’s “baseless threats” and was joined by other congressional Democrats.

In an X post, Sen. Chris Murphy (D-Conn.) wrote: “Let’s open our eyes. This isn’t a functioning democracy any longer when—in the middle of a high stakes funding fight—the President illegally suspends federal projects in states run by Democrats as a way to punish the political opposition.”

The Hudson Tunnel Project seeks to construct a new railroad tunnel under the Hudson River between New York and New Jersey to allow more passenger trains to travel to New York’s Pennsylvania Station.

Currently, there is only one railroad tunnel, the North River Tunnel, which has in and out tracks shared by Amtrak and the New Jersey Transit. A new tunnel would expand capacity to four tracks entering and exiting New York City under the river.

“GDC has received notification from FTA regarding a pause in disbursements for the Hudson Tunnel Project,” Thomas Prendergast, chief executive officer of the Gateway Development Commission (GDC), which runs the project, wrote in an email to The Epoch Times. “GDC complies with all federal laws and regulations and will continue to do so throughout the project.”

A second phase of construction of the Second Avenue Subway would extend the New York City Subway line along Manhattan’s Second Avenue, running from 96th Street to 125th Street. The first phase was completed and opened in 2017.

The New York Metropolitan Transportation Authority, a state agency, Amtrak, and Schumer did not immediately respond to requests for comment.