The Trump administration has decided to withhold $18 billion in federal funds from New York City for two major infrastructure projects.
Funding Freeze Halts NY Subway, Hudson Rail Projects
The funding freeze impacts two projects: the Second Avenue subway line expansion and the development of new commuter rail tunnels beneath the Hudson River, reported The New York Times. These projects, which aim to alleviate congestion and enhance travel for millions of New Yorkers and commuters, have been in progress for several years.
Work has already begun on the $16 billion Gateway tunnel project. The funding freeze is likely to push Democrats to work with Republicans to reopen the government, as Department of Transportation staff are currently furloughed.
Sean Duffy, the Transportation Secretary, announced that the funds would be held back while the Transportation Department reviews New York State’s “discriminatory, unconstitutional contracting processes.” This review was triggered by President Trump’s executive orders targeting diversity, equity, and inclusion programs.
The major funding freeze also seems aimed at pressuring Democrats to cooperate with Republicans on reopening the government. With the Department of Transportation staff furloughed, reviews are stalled, and federal funds for ongoing projects cannot be disbursed.
Hochul, Mamdani Condemn Trump’s Threats To Withhold Funds
It remains unclear if the $18 billion is allocated exclusively to the Second Avenue Subway and the Gateway Project or if it also covers other projects. New York Governor Kathy Hochul has characterized the announcement as the latest assault by the Trump administration on the state and its values, reported the New York Times.
Meanwhile, mayoral candidate Zohran Mamdani told ‘The View’ on Wednesday that withholding federal funds to NYC is among Trump’s ‘many threats.’
Similar to previous attempts by the Trump administration to withhold or postpone federal funding for New York, this decision will likely face legal challenges.
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Trump Withdraws California Rail Funds, Omits Diversity And Climate Goals
This decision comes after the Trump administration’s recent actions regarding infrastructure funding. Earlier in September, the administration reallocated $2.4 billion from California’s high-speed rail project that it withdrew to a new $5 billion program aimed at enhancing passenger rail services across the country.
The new program’s guidelines, set by the Trump administration, omitted any references to diversity or climate change, which were previously included during the Biden administration.
Moreover, President Trump’s recent comments on the New York City mayoral race have also raised concerns. He suggested that federal funding could be blocked if progressive candidate Zohran Mamdani is elected, sparking criticism from Bernie Sanders (I-VT).
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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