WASHINGTON (AP) — The Trump administration said Wednesday that it was putting a hold on roughly $18 billion to fund a new rail tunnel beneath the Hudson River between New York and New Jersey and the city’s expanded Second Avenue subway project because of the government shutdown.
The White House budget director, Russ Vought, said on a post on X that the step was taken due to the Republican administration’s belief that the money was “based on unconstitutional DEI principles,” a reference to diversity, equity and inclusion.
But an administration official, who was not authorized to discuss the matter publicly and insisted on anonymity to discuss the hold, said the government shutdown that started at midnight meant that the Transportation Department employees responsible for reimbursing workers on the projects had been furloughed, so the money was being withheld.
The suspension of funds is likely meant to target Senate Democratic leader Chuck Schumer of New York, whom the White House is blaming for the shutdown.
In a 2023 interview with The Associated Press, Schumer said he and then-President Joe Biden were both “giddy” over the rail tunnel project, adding that it was all they talked about in the presidential limousine as they rode to the site.
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