Trump to withhold billions of dollars from NYC train, subway projects

By Ry Rivard, Irie Sentner, Emily Ngo, Chris Marquette, Hailey Fuchs, Nicholas Wu, Gregory Svirnovskiy | 10/01/2025 12:39 PM EDT

The move was announced hours after the federal government shutdown.

Office of Management and Budget Director Russell Vought speaks alongside House Speaker Mike Johnson, Senate Majority Leader John Thune, and Vice President JD Vance outside the White House.

Office of Management and Budget Director Russ Vought speaks alongside House Speaker Mike Johnson (R-La.), Senate Majority Leader John Thune (R-S.D.) and Vice President JD Vance after a meeting with congressional Democrats and President Donald Trump at the White House on Monday. Francis Chung/POLITICO

The Trump administration is planning to withhold billions of dollars from one of the nation’s largest public works projects in direct retaliation for the government shutdown, which Republicans are blaming on Senate Minority Leader Chuck Schumer and fellow Democrats.

White House budget director Russell Vought said Wednesday the administration is withholding “roughly $18 billion” from New York City infrastructure projects because of “unconstitutional DEI principles.” He specifically cited funding for the massive bistate Gateway Program, which includes a new train tunnel under the Hudson River to connect New York and New Jersey, and New York City’s Second Avenue Subway line.

The Department of Transportation had written New York to inform the state the two projects were under administrative review to determine whether the state was subsidizing infrastructure contracts with taxpayer money based on discriminatory principles, referring to DOT’s Disadvantaged Business Enterprise Program.

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A spokesperson for the Transportation Department, in a statement, blamed Democratic leaders in Congress for the shutdown and said it led to the agency furloughing civil rights staff responsible for conducting the administrative review.

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