Former President Joe Biden arrives at the construction site of...

Former President Joe Biden arrives at the construction site of the Hudson Tunnel Project in 2023. Credit: AP/John Minchillo

President Donald Trump's administration said Wednesday it is blocking $18 billion in funding for a New York City rail tunnel under the Hudson River and the Second Avenue Subway — citing not only the government shutdown but also issues of culture and diversity.

The move triggered a rebuke from Gov. Kathy Hochul and from the Metropolitan Transportation Authority, which accused Trump officials of "inventing" reasons to delay major New York projects.

"They are trying to make culture wars the reason," Hochul said at a news conference in Manhattan. "You can’t make this stuff up folks. It just keeps getting worse and worse."

The New York Democrat said the Republican president and Congress were holding up long-anticipated projects that just recently "finally got moving."

WHAT NEWSDAY FOUND

  • The Trump administration said it is blocking $18 billion in funding for a New York City rail tunnel under the Hudson River and the 2nd Avenue Subway — citing not just the government shutdown but issues of culture and diversity.
  • The move triggered a rebuke from Gov. Kathy Hochul and the MTA, which accused Trump officials of "inventing" reasons to delay major New York projects.
  • White House budget director Russell Vought said the funding freeze was taken due to the administration’s belief that the money was "based on unconstitutional DEI principles."

"That’s what a partnership with Washington looks like as we’re standing here. We’ve done our part. We’re ready to build. It’s underway," she said. "And now we realize that they’ve decided to put their own interpretation of proper culture ahead of our needs, the needs of a nation. ... People need to see there are consequences right now with what the Republicans have done."

The federal government shutdown began at midnight Tuesday amid a budget stalemate, with the impacts beginning almost immediately.

White House budget director Russell Vought said in a post on X the funding freeze was taken due to the Republican administration’s belief that the money was "based on unconstitutional DEI principles," a reference to diversity, equity and inclusion.

President Joe Biden is greeted by Senate Majority Leader Sen....

President Joe Biden is greeted by Senate Majority Leader Sen. Chuck Schumer of N.Y., as he arrives to speak at the construction site of the Hudson Tunnel Project in New York, Jan. 31, 2023, during an event on infrastructure. Credit: AP/Susan Walsh

Vice President JD Vance at a White House press briefing was asked about the funding but did not address whether the projects were targeted because they are in New York — home state of Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.

"Look, I haven't talked to Russ about this, this morning, but look, I'm sure that Russ is heartbroken that he's unable to give certain things to certain constituencies," Vance said. "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 triage to make sure the most critical and most essential services are provided."

In a statement, the U.S. Transportation Department said it had been reviewing whether any "unconstitutional practices" were occurring in the two massive infrastructure projects, and the government shutdown forced it to furlough the staffers conducting the review.

The MTA wasn't buying it.

Russell Vought, Office of Management and Budget director, listens as...

Russell Vought, Office of Management and Budget director, listens as he addresses members of the media outside the West Wing at the White House in Washington, Monday, Sept. 29, 2025, in Washington. Credit: AP/Evan Vucci

“The federal government wants to immediately ‘review’ our compliance with rules they told us about moments ago. We’re reviewing their tweets and press releases like everyone else," John J. McCarthy, the MTA's chief of policy and external relations, said. "For now, it looks like they’re just inventing excuses to delay one of the most important infrastructure projects in America."

The Hudson River rail tunnel is a long-delayed project whose path toward construction has been full of political and funding switchbacks. It’s intended to ease the strain on a 110-year-old tunnel connecting New York and New Jersey. Hundreds of Amtrak and commuter trains carry hundreds of thousands of passengers per day through the tunnel, and delays can ripple up and down the East Coast between Boston and Washington, D.C.

The Second Avenue Subway was first envisioned in the 1920s. The subway line along Manhattan’s Second Avenue was an on-again, off-again grail until the first section opened on Jan. 1, 2017. The state-controlled MTA is working toward starting construction on the second phase of the line, which is to extend into East Harlem.

"That royally screws commuters," Schumer said in a social media post, referring to the railway funding freeze. "Obstructing these projects is stupid and counterproductive because they create tens of thousands of great jobs and are essential for a strong regional and national economy."

New York's other senator, Sen. Kirsten Gillibrand, noted in May that she had secured an "on-the-record commitment" from Transportation Secretary Sean Duffy that he "would not cancel grants for major transit capital investment projects" despite the potential for a federal government shutdown. 

Said Gillibrand: “The Trump administration is using New York City as a political pawn in a way that could have disastrous ramifications for New Yorkers."

Newsday's Billy House, Laura Figueroa Hernandez and Alfonso Castillo and The Associated Press contributed.

Diddy sentencing expected tomorrow ... SCPD drone program ... Yanks force Game 3 against Red Sox Credit: Newsday

Government shutdown likely to drag on ... Trump blocks $18B in rail funding ... Nostalgia at Comic Book Depot ... What's up on LI

Diddy sentencing expected tomorrow ... SCPD drone program ... Yanks force Game 3 against Red Sox Credit: Newsday

Government shutdown likely to drag on ... Trump blocks $18B in rail funding ... Nostalgia at Comic Book Depot ... What's up on LI

SUBSCRIBE

Unlimited Digital AccessOnly 25¢for 6 months

ACT NOWSALE ENDS SOON | CANCEL ANYTIME