"The Trump administration has decided to withhold $18 billion in federal funds from New York City for two major infrastructure projects. The funding freeze impacts two projects: the Second Avenue subway line expansion and the development of new commuter rail tunnels beneath the Hudson River, reported The New York Times. These projects, which aim to alleviate congestion and enhance travel for millions of New Yorkers and commuters, have been in progress for several years."
"Sean Duffy, the Transportation Secretary, announced that the funds would be held back while the Transportation Department reviews New York State's "discriminatory, unconstitutional contracting processes." This review was triggered by President Trump's executive orders targeting diversity, equity, and inclusion programs. The major funding freeze also seems aimed at pressuring Democrats to cooperate with Republicans on reopening the government. With the Department of Transportation staff furloughed, reviews are stalled, and federal funds for ongoing projects cannot be disbursed."
The funding freeze affects the Second Avenue subway line expansion and new commuter rail tunnels beneath the Hudson River, projects intended to alleviate congestion and improve travel for millions. Work has already begun on the $16 billion Gateway tunnel project. The Transportation Department will review New York State's "discriminatory, unconstitutional contracting processes" after President Trump's executive orders targeting diversity, equity, and inclusion programs. Department of Transportation staff are furloughed, stalling reviews and preventing disbursement of federal funds for ongoing projects. The freeze appears intended to pressure Democrats to cooperate with Republicans to reopen the government. Governor Kathy Hochul and mayoral candidate Zohran Mamdani condemned the withholding of funds.
Read at Benzinga
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