White House pauses $18B in New York projects and $8B in climate funding as shutdown continues
The White House has paused roughly $18 billion in infrastructure funding for New York — including support for the Second Avenue subway (a $300 million disbursement affected immediately) and the Hudson Tunnel project — and about $8 billion in climate‑related grants while the federal government remains shut down. OMB and USDOT tied the reviews to the shutdown, prompting criticism from Democratic leaders such as Senate Minority Leader Chuck Schumer and Gov. Kathy Hochul, while President Trump and OMB Director Russell Vought characterized the pause as a chance to trim or reprioritize spending.
Government/Regulatory
Politics
Infrastructure
Economy
🔍 Key Facts
- The White House/OMB has paused roughly $18 billion in federal funding for New York projects, including NYC subway work and the Hudson Tunnel project.
- Separately, the administration has paused about $8 billion in climate-related projects.
- USDOT explicitly tied its review of the New York funding to the ongoing federal shutdown.
- One immediate operational impact: a $300 million disbursement for the Second Avenue subway project will be affected right away.
- OMB made the funding hold public via statements/posts (including Russell Vought on X), and Democratic leaders and New York officials (Sen. Chuck Schumer, Gov. Kathy Hochul) have issued public reactions.
- President Trump has publicly framed the shutdown as an opportunity to reshape spending—praising OMB Director Russ Vought’s budget 'trimming' and posting on Truth Social about using the shutdown to 'clear out dead wood.'
- The Senate is not expected to vote again until Friday because of Yom Kippur, limiting the near-term prospects for restoring the paused funds.
📍 Contextual Background
- OMB is the abbreviation for the Office of Management and Budget, an office within the executive branch of the United States federal government responsible for assisting the President in preparing the federal budget and supervising its administration in executive agencies.
- A continuing resolution (CR) is a temporary funding measure used by the U.S. Congress to keep federal agencies operating while House and Senate negotiators complete annual appropriations for a fiscal year.
📰 Sources (4)
Government shutdown live updates as impasse enters second day
New information:
- CBS live update confirms the White House move to pause $18 billion in New York infrastructure funding and $8 billion in climate-related projects.
- Reports that Senate won't vote again until Friday (observance of Yom Kippur) which affects the near-term path to restoring funding.
- Direct quote from President Trump on Truth Social framing the shutdown as a chance to 'clear out dead wood.'
Trump uses government shutdown to dole out firings and political punishment
New information:
- Direct attribution that OMB placed roughly $18 billion on hold for New York subway and Hudson Tunnel projects during the shutdown (confirmed in this AP piece)
- Contextual quote from President Trump praising OMB Director Russ Vought's ability to 'trim the budget' and framing the shutdown as an opportunity to reshape spending priorities
Trump freezes $18 billion in funding for NYC, home to key Democratic leaders
New information:
- USDOT explicitly tied its review of New York funding to the federal shutdown in its statement, per NPR reporting.
- NPR reports an immediate operational effect: a $300 million disbursement for the Second Avenue subway project will be affected immediately.
- Direct attributions and quotes included from Russell Vought (OMB post on X), Senate Minority Leader Chuck Schumer (post on X), and New York Gov. Kathy Hochul's press‑conference remarks.