Trump Axes $18B For NYC Projects, Including 2nd Ave Subway

UPPER EAST SIDE, NY — The Trump administration said Wednesday that it is halting nearly $18 billion in funding for two major New York City transit projects, citing opposition to diversity, equity and inclusion requirements.

The funding freeze affects two of the city’s biggest transit efforts: the Hudson Tunnel Project and the Second Avenue Subway expansion, which entered its second phase of construction last month.

Russ Vought, President Trump’s budget director and co-author Project 2025, said on social media that the money will no longer move forward because of what he called "unconstitutional DEI principles."

The move, which refers specifically to DOT’s Disadvantaged Business Enterprise Program, comes amid a government shutdown, and a day after the Trump administration gutted funding for the NYPD's counter-terrorism unit.

“They’re trying to make culture wars be the reason why, culture wars over the tens of thousands of jobs that we’ve created with these infrastructure projects that were literally talked about for decades,” New York Gov. Kathy Hochul said to Politico Wednesday.

Rep. Jerry Nadler said Wednesday that the funding reversal could put the entire nation's economy at risk.

"The Trump Administration is shamefully freezing funding for two of the most critical infrastructure projects in the nation because Democrats refused to rubber-stamp a plan that does nothing to stop Americans’ health insurance premiums from doubling," Nadler said.

"These aren’t just local transportation projects. This unprecedented political retribution could put our nation’s entire economy at risk. Experts have long warned that a Hudson Tunnel failure could trigger a regional recession that drags on the entire U.S. economy."

This is a developing story and will be updated. For questions and tips, email Miranda.Levingston@Patch.com.