New York transit funding temporarily halted

The U.S. federal government has temporarily halted $18 billion in infrastructure funding allocated for critical transportation projects in New York City, including the Hudson Tunnel Project and the Second Avenue Subway extension, citing concerns over enforcement of diversity, equity, and inclusion (DEI) policies.

The freeze announcement was made by the White House Office of Management and Budget, which claimed that the withheld funds are being reviewed to ensure they are not disbursed in support of “unconstitutional DEI principles.” The Department of Transportation has also paused processing a $300 million reimbursement for the Second Avenue Subway, and officials stated that the review is delayed further by the partial federal government shutdown, which has sidelined staff responsible for compliance oversight.

The Hudson Tunnel, part of the larger Gateway Program connecting New York and New Jersey, had previously secured over $11 billion in federal support, while the Second Avenue Subway expansion was backed by an additional $3.4 billion in grants. By holding these funds, the federal government is placing these flagship projects in limbo.