Shutdown Standoff: Trump's Funding Freeze on Critical NY-NJ Tunnel Projects

The Trump administration has announced a hold on $18 billion earmarked for a new rail tunnel beneath the Hudson River and the Second Avenue subway expansion, citing the government shutdown. The move is reportedly linked to objections over diversity, equity, and inclusion principles.

White House budget director Russ Vought supported the decision, criticizing what he described as unconstitutional practices in the infrastructure projects. This action appears to target Democratic leader Chuck Schumer, who has voiced concerns about the impact on commuters and job creation.

The White House's maneuver highlights the political tensions surrounding federal funding. While New York officials and infrastructure authorities express frustration, the administration uses fiscal control to influence shutdown negotiations, putting jobs and development projects at risk.

(With inputs from agencies.)