Trump Administration Freezes $18 B in Funding for Gateway Tunnel, Citing Review Over DEI Policies
Wednesday’s decision by the Trump administration to freeze $18 billion in federal money for the Hudson River rail tunnel (Gateway project) and the Second Avenue Subway extension was decisive. The pause is related to a broad assessment of whether diversity, equality, and inclusion (DEI) criteria unlawfully influenced federal funding.
The White House Office of Management and Budget said the payments were blocked to “ensure funding is not flowing based on unconstitutional DEI principles.” That reasoning reflects the administration’s effort to abolish race- and gender-based federal award biases. The Department of Transportation will delay a $300 million Second Avenue Subway refund payment while its staff, some of whom are furloughed due to a partial government shutdown, reviews.
New York authorities slammed the budget freeze, saying it harms transportation and economic development. Governor Kathy Hochul termed it “political payback” for regular New Yorkers. The Gateway Development Commission and Metropolitan Transportation Authority, which oversee the tunnel and subway projects, reaffirmed their commitment to completion.
The freeze coincides with Washington’s budget and government shutdown tensions. Budget director Russell Vought linked the hold to New York congressional leadership reservations, suggesting it was meant to pressure Democratic lawmakers. The budget freeze has sparked partisan dispute over whether it is oversight or political.
This follows the administration’s prior policy adjustments to eradicate race and gender in highway and transit contracts. The Transportation Department stated in May that it will no longer consider race and gender when awarding federal transportation contracts, citing a constitutional ruling that invalidated a longstanding practice.
Construction delays, increased expenses, and legal challenges over federal authority and civil rights safeguards are expected from the funding suspension. Administration officials say the suspension is needed to protect government spending constitutionality.
Sources
• Reuters
• Associated Press
• Washington Post
• Politico
• Wall Street Journal
