Trump Admin Halts $18 Billion in Funding in Schumer and Jeffries’ Backyard [WATCH]

The Department of Transportation (DOT) has suspended funding for two of New York City’s largest transit initiatives — the Hudson Tunnel and the Second Avenue Subway — halting nearly $18 billion in federal money.

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. More info to come soon from @USDOT.

— Russ Vought (@russvought) October 1, 2025

The freeze is directly tied to the government shutdown, which began after Congress failed to pass a funding bill before the deadline.

Vice President J.D. Vance addressed the issue when pressed by reporters on the impact to New York City projects.

“We want to do everything that we can to help the American people. But when the Democrats shut down the government, we have to actually do a little triage to make sure the most critical and most essential services are provided,” Vance said at the White House.

.@VP: “We want to do everything that we can to help the American people, but when the Democrats shut down the government, we have to actually do a little triage to make sure the most critical and most essential services are provided.” pic.twitter.com/ilqN6EAlCX

— Rapid Response 47 (@RapidResponse47) October 1, 2025

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A source familiar with the matter confirmed to Fox News Digital that the suspension is linked to the furlough of key DOT staff, which has stalled reimbursements to contractors.

The source also noted that the Trump administration intends to review whether contracts associated with the multibillion-dollar New York projects were influenced by diversity, equity, and inclusion (DEI) initiatives.

That review, however, has also been paused due to the funding lapse.

The halted funding places the Hudson Tunnel and Second Avenue Subway projects at risk of delays.

The Hudson Tunnel is a central part of the Gateway Program to modernize rail connections between New York and New Jersey.

The Second Avenue Subway extension is intended to expand service north into East Harlem, a long-awaited expansion first proposed nearly a century ago.

In a statement, DOT said it has informed New York officials that both projects are under review to “determine whether any unconstitutional practices are occurring.”

The agency emphasized the projects’ importance, stating they are “arguably the largest infrastructure initiatives in the Western Hemisphere, and the American people want to see them completed quickly and efficiently.”

DOT also said the review process would be slowed due to the shutdown, blaming Democratic leaders.

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

The department added that the delay was “another casualty of Democrats’ reckless decision to hold the federal government hostage to give illegal immigrants benefits.”

Breaking: @USDOT puts $18 billion for two New York City mega infrastructure project on hold and will not process reimbursements, pending review that it says is impacted because of the government shut down pic.twitter.com/pme3lsxwBf

— David Shepardson (@davidshepardson) October 1, 2025

Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries released a joint statement criticizing President Donald Trump’s administration for pausing the projects.

“The Gateway Tunnel and Second Avenue Subway aren’t political trophies — they are lifelines. They mean tens of thousands of good-paying union jobs. They mean shorter commutes, safer travel, and a stronger economy not just for New York, but for the entire nation,” the two Democrats said.

“Instead of playing politics with the livelihoods of millions, President Trump should be working on bipartisan solutions to strengthen infrastructure, lower costs, and deliver for the American people,” they added.

The Gateway Development Commission (GDC), which oversees the Hudson Tunnel, confirmed the federal government has paused disbursements.

“GDC complies with all federal laws and regulations and will continue to do so throughout the project. We look forward to continuing our productive relationship with the Administration, FTA, FRA, and the US Department of Transportation,” GDC CEO Thomas Prendergast said in a statement.

“In the meantime, we remain focused on keeping the project on scope, schedule and budget.”

The Second Avenue Subway project has a long and troubled history.

First proposed in 1929, the plan was repeatedly delayed due to economic downturns, including the Great Depression and the city’s fiscal crisis in the 1970s.

A partial tunnel was built in that decade but abandoned when funds ran out. Work resumed in 2007, and the first phase, extending service to East 96th Street, was completed in 2017.

The second phase is planned to extend north of 96th Street, adding three new stations and connecting East Harlem to the rest of the system.

The expansion is expected to improve access for more than 100,000 residents.

With funding on hold, both the Hudson Tunnel and the Second Avenue Subway now face further uncertainty as the shutdown continues, leaving the timeline for two of the nation’s most prominent transit projects in doubt.