Trump Administration Puts on Hold $18 Billion in Funding for New York City Infrastructure Projects

BAYONNE, NJ – SEPTEMBER 28: The sun sets on the Statue of Liberty and the Empire State Building in New York City on September 28, 2025, as seen from Bayonne, New Jersey. (Photo by Gary Hershorn/Getty Images)

WASHINGTON (AP) — The Trump’s administration is citing the government shutdown in explaining why it’s holding up roughly $18 billion for a new rail tunnel beneath the Hudson River between New York City and New Jersey and an extension of the city’s Second Avenue subway. The move is likely meant to target Senate Democratic leader Chuck Schumer of New York. To the White House, he’s the one to blame for the budget. He says the freeze would harm commuters. The New York agency working on the subway line says it’s been blindsided by the announcement. Meanwhile, Trump’s budget director says $8 billion in funding for green energy projects in Democratic-led states would be canceled.

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