Now he's coming for our level playing field.
The Trump administration says it will withhold $18 billion for New York's Hudson River Gateway Tunnel and Second Avenue Subway projects — attacking the projects' adherence to federal woman- or minority-owned business mandates.
The move came one day after the Department of Homeland Security withheld transit security funding over New York's "sanctuary jurisdiction" policies.
"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," Trump Budget Director Russ Vought posted on X at 10:04 a.m. on Wednesday.
Vought specified that he meant the two marquee projects in a follow-up tweet:
New York has had requirements for awarding contracts to small businesses and women- and minority-owned businesses since the 1980s, adhering to federal legislation that the Trump administration now claims is unconstitutional.
In a statement that followed Vought's tweets, U.S. DOT said the two projects must be reviewed to comply with a new rule that the agency issued late on Tuesday night "barring race- and sex-based contracting requirements from federal grants."
The rule, which appeared to have been drawn up so hastily that it did not include an effective date, cited a 2024 Kentucky federal judge's ruling that race may only be considered in a "narrowly tailored fashion." MTA and Gateway Development Commission officials never even had a chance to comply with the rule, since Duffy only issued it last night.
"U.S. DOT issued letters to New York to inform them that their two mega projects – the Second Avenue Subway and Hudson Tunnel – are under administrative review to determine whether any unconstitutional practices are occurring," U.S. DOT said. "Thanks to the Chuck Schumer and Hakeem Jefferies [sic] shutdown, however, U.S. DOT’s review of New York’s unconstitutional practices will take more time."
The statement added that the projects had been singled out "because they are arguably the largest infrastructure initiatives in the Western Hemisphere, and the American people want to see them completed quickly and efficiently."
MTA officials were gobsmacked.
“The federal government wants to immediately ‘review’ our compliance with rules they told us about moments ago," said MTA spokesperson John McCarthy, referring to the Second Avenue Subway project. "We’re reviewing their tweets and press releases like everyone else. For now, it looks like they’re just inventing excuses to delay one of the most important infrastructure projects in America."
Gateway Development Commission CEO Tom Prendergast didn't pack as much anger in his statement, which merely confirmed that his agency had been notified of the funding pause.
"GDC complies with all federal laws and regulations, and will continue to do so throughout the project," Prendergast said. "In the meantime, we remain focused on keeping the project on scope, schedule, and budget."
And Gov. Hochul condemned President Trump for "political payback."
"Every New Yorker should be outraged. From the construction worker who could lose their job, to the commuter stuck on a delayed train, to the families who rely on brave law enforcement officers to keep them safe," she said in a statement. "I will not sit idly by while Donald Trump defunds public safety and lets our infrastructure crumble. We will use every tool available to us to restore this funding and ensure that these critical infrastructure projects get built and keep every New Yorker safe.”
A culture war on multiple fronts
Team Trump's latest salve in its war on New York came after DHS allocated $0 to the MTA as part of an annual public safety grant program.
A DHS presentation circulating on Capitol Hill singled out New York explicitly for its "sanctuary city" immigration enforcement policies. The document, which was obtained by Streetsblog, shows a list of jurisdictions who applied for grants under the Homeland Security Program and Urban Area Security Initiative — with every state but New York receiving funding.
Further down, the document specifies that, "Recipients will be prohibited from subawarding to a subrecipient that is designated as a sanctuary jurisdiction."
Oddly, however, New York was the only jurisdiction "zeroed out" on the list, while others on the Trump administration's official sanctuary jurisdiction received funds.
New York Attorney General Letitia James sued the feds for the money late Tuesday.
“Congress created this program after 9/11 to protect millions of daily riders," James said in a statement. I am asking the court to act before midnight to stop these funds from vanishing and to ensure that New Yorkers are not put at risk by this administration’s political games.”
James's office did not immediately comment on U.S. DOT's hold on the infrastructure project funding.
Additional reporting by Dave Colon and Nolan Hicks
