Vought Freezes $18 Billion for New York's Hudson Tunnel and Second Avenue Subway

On October 1, 2025, the first day of the government shutdown, White House budget director Russell Vought announced that roughly $18 billion in New York City infrastructure funding had been put on hold. The two projects named were the Hudson Tunnel Project, the trans-Hudson rail crossing serving Amtrak and NJ Transit, and the Second Avenue Subway extension. Vought wrote that the money was paused "to ensure funding is not flowing based on unconstitutional DEI principles." Senate Minority Leader Chuck Schumer said the administration was "using New Yorkers and New Jerseyites as pawns," and Governor Kathy Hochul called the move "political payback." Republican Rep. Mike Lawler also objected, calling the freeze harmful to critical infrastructure.

The episode tests how far the executive branch can go in withholding money Congress has already appropriated, and whether a funding lapse can be used as leverage against specific states. Both projects were multi-year, previously obligated federal commitments rather than discretionary shutdown spending, and the stated rationale tied the freeze to recipients' diversity policies rather than to project performance.

The holds were announced by press statement rather than through a formal rescission request to Congress. No court had ruled on the freeze at the time of the announcement.