Trump freezes $18 billion in funding for NYC, home to key Democratic leaders

On the first day of the federal government shutdown, the Trump administration fired a financial salvo at New York City, home to Senate Minority Leader Senator Chuck Schumer and House Minority Leader Hakeem Jeffries by freezing $18 billion in infrastructure dollars budgeted by Congress. Schumer and Jeffries are key Democrats in the budget dispute with the White House.

“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,” said Russell Vought, head of the federal Office of Management and Budget, in a post on X.

In a separate post, the U.S. Department of Transportation explicitly linked the federal review to the shutdown, saying, “USDOT’s review of New York’s unconstitutional practices will take more time” because of the budget impasse. Officials said a disbursement of $300 million in funding for New York’s Second Avenue subway project would be affected immediately.

The $18 billion cut targets money for two major transportation projects. One is construction of a rail tunnel under the Hudson River between New York and New Jersey, due for completion in the next decade. It is a priority for Schumer and was backed by former President Joe Biden. The second is the Second Avenue project in the New York City subway system.

Schumer, Jeffries and other Democratic leaders in New York have rejected the Trump administration’s claim that the federal shutdown is being caused by Democratic lawmakers.

“Republicans JUST VOTED DOWN our bill to avoid a government shutdown at midnight and address the healthcare needs of the American people,” Schumer wrote on X in the hours before the shutdown began. “Republicans are plunging us into a government shutdown rather than fixing their healthcare crisis.”

During a press conference on Wednesday, Gov. Kathy Hochul, a Democrat, also blamed the shutdown on Trump and Republican leaders. “They hold all the levers of power,” Hochul said, while predicting the shutdown would inflict “pain on millions of Americans.” Hochul also rejected the administration’s claim that the cuts to the New York projects are related to DEI, saying it was trying to use “culture wars” as the reason.

In a statement, Hochul also condemned the freezing of infrastructure dollars: “We’ve done our part, we’re ready to build, it’s underway,” Hochul said

This isn’t the first time Trump has opposed funding for massive infrastructure projects in New York City. During his first term, Trump threatened to veto funding for a long-delayed, costly rail tunnel under the Hudson River.

Trump has also previously threatened funding for New York City in order to apply political pressure on Democratic leaders and influence New York politics. Just this week, he said he would cut off all federal dollars for the city if voters elect state Assemblyman Zohran Mamdani as mayor.

“Remember, he needs the money from me, as President, in order to fulfill all of his FAKE Communist promises,” Trump posted on his social media platform. “He won’t be getting any of it, so what’s the point of voting for him?”

Mamdani is not a communist. The state Assemblyman, a member of the Democratic Socialists of America, has led the mayoral race for months. He currently faces independent Andrew Cuomo and Republican Curtis Sliwa. The current mayor, Eric Adams, dropped out of the contest on Sunday. Polls show Mamdani as the frontrunner.

In a post on X, Mamdani also blasted Trump over the federal government shutdown. “They shut it down because they’re determined to strip healthcare from millions of Americans, to enrich the billionaires they serve, to continue the assault on our rights,” he wrote.