"He later clarified that the projects affected include the Hudson Tunnel Project, which is aimed at repairing and expanding a key rail link under the Hudson River, and the Second Avenue Subway, a long-delayed expansion of Manhattan's subway system. Vought posted on social media: OMB officials did not provide a detailed legal analysis or timeline for the release of the funds, but emphasized that the move is intended to ensure federal spending complies with what the administration considers constitutional guidelines regarding DEI."
"The decision will almost certainly intensify political tensions in Washington, adding pressure to ongoing negotiations over the federal budget while raising questions about the long-term viability of major infrastructure projects in the nation's largest city. The Hudson Tunnel Project and the Second Avenue Subway have been in planning or construction for years, with costs already reaching tens of billions of dollars. Any delays are expected to have economic and logistical consequences, including extended construction timelines and potential cost overruns."
The Trump administration froze roughly $18 billion in federal funding for New York City infrastructure projects, citing concerns about the use of diversity, equity, and inclusion (DEI) principles in planning and execution. The freeze affects the Hudson Tunnel Project and the Second Avenue Subway. OMB officials and director Russ Vought provided no detailed legal analysis or timeline for releasing the funds. The announcement came hours after a government shutdown and is likely to intensify political tensions and complicate budget negotiations. Delays could extend construction timelines, drive cost overruns, and raise questions about the long-term viability of major projects in the nation's largest city.
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