Federal Freeze: $18 Billion Withheld from NYC Infrastructure Amidst Political Standoff
The U.S. federal government is withholding $18 billion for New York's Hudson Tunnel and Second Avenue Subway projects amidst a government shutdown. The move pressures Democrats in Congress and delays crucial infrastructure work. The projects are vital for the city's commuting and economic output.
In a significant development, the federal government is withholding $18 billion allocated for the Hudson Tunnel reconstruction and the Second Avenue Subway projects, pivotal elements of New York City's infrastructure plan. This decision came as the White House budget chief disclosed the suspension shortly after a partial government shutdown took effect, marking the latest step in the ongoing political struggle to pressure Congressional Democrats.
Democratic leaders, including Senate Democratic Leader Chuck Schumer of New York, have been staunch advocates for both projects. They are vigorously opposing former President Donald Trump's strategy to extend government funding. White House Office of Management and Budget Director Russ Vought explained on platform X that the funds are being withheld to counter unconstitutional diversity, equity, and inclusion principles.
The U.S. Transportation Department has announced an administrative review postponing a $300 million reimbursement for the subway expansion. The delay is attributed to the furlough of essential staff during the shutdown. This decision casts a spotlight on the $17.2 billion Hudson River tunnel project, emphasizing its critical role in connecting New Jersey to Manhattan and supporting 10% of the national economic output.
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