US puts hold on $18 billion for New York's Hudson Tunnel, Second Ave Subway

"The $17.2 billion Hudson River tunnel project -- which received more than $11 billion in federal grants -- is repairing an existing tunnel, and building a new one for passenger railroad Amtrak and state commuter lines between New Jersey and Manhattan. Any failure of the current Hudson tunnel, which was heavily damaged during 2012's Superstorm Sandy, would hobble commuting in the metropolitan area that produces 10% of the country's economic output."

""Roughly $18 billion in New York City infrastructure projects have been put on hold to ensure funding is not flowing based on unconstitutional DEI principles," said White House Office of Management and Budget director Russ Vought on X, referring to diversity, equity and inclusion efforts. The U.S Transportation Department said it would not process a $300 million reimbursement for the subway project pending an administrative review, adding that it will take more time because staff responsible for conducting the review have been furloughed in the shutdown."

Federal authorities have placed an $18 billion funding hold on two major New York City transit projects: the Hudson River tunnel reconstruction and the Second Avenue Subway extension. The hold came hours after a partial government shutdown and was framed by the White House OMB director as aimed at preventing funding tied to what he called unconstitutional DEI principles. The U.S. Transportation Department will not process a $300 million reimbursement for the subway project pending an administrative review that is delayed because responsible staff were furloughed. The Hudson project, which has received over $11 billion in federal grants, repairs and adds a tunnel serving Amtrak and commuter lines; a failure of the existing tunnel would severely disrupt a region producing about 10% of U.S. economic output. The Biden administration had awarded $3.4 billion for the Second Avenue Subway extension to Harlem.

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