A review into whether contracts were awarded improperly based on race has been delayed because of the shutdown.
The Trump administration is holding up $18 billion in funding for New York City infrastructure projects, claiming that an investigation into whether contracts for the projects were awarded improperly based on race has been held up by the government shutdown.
The move directly targets Democratic congressional leaders Chuck Schumer and Hakeem Jeffries, both of whom represent New York. The funding was bound for the Hudson Tunnel Project and the Second Avenue Subway, two of the city’s major infrastructure developments.
“Subsidizing infrastructure projects with taxpayer dollars based on discriminatory principles is unconstitutional, counter to civil rights laws, and a waste of taxpayer resources,” a Department of Transportation spokesman said in a statement.
Contracts awarded as part of the two major infrastructure projects are being placed under administrative review to ensure that they were awarded based solely on merit and not based on any DEI concerns. That administrative review will be delayed because the staffers responsible for conducting it have been furloughed.
“Thanks to the Chuck Schumer and Hakeem Jeffries shutdown, however, USDOT’s review of New York’s unconstitutional practices will take more time. Without a budget, the department has been forced to furlough the civil rights staff responsible for conducting the review,” the spokesman continued.
The infrastructure projects at play will primarily impact Manhattan, where Senate Minority Leader Schumer has a sizable constituency. Jeffries, who as a House Minority Leader also played a significant role in driving the government shutdown, represents a section of Brooklyn.
The Hudson River Tunnel Project consists of a new tunnel and railroad infrastructure underneath the river on Manhattan’s west side and east of New Jersey. The Second Avenue Subway runs up Manhattan’s east side. The city is currently constructing two new stations and extending service in northern Manhattan.
The government shutdown began at midnight after Republican and Democratic lawmakers failed to come to a deal Tuesday evening.
Republicans have blamed Schumer for the shutdown and accused him of hypocrisy because of his support for stopgap funding bills during Democratic administrations. Democrats have taken a firm stand on extending Obamacare subsidies set to expire. They are also seeking to repeal parts of the GOP’s mammoth budget bill that reformed Medicare and defunded left-wing public broadcasting organizations.
Ahead of the shutdown, President Trump said the shutdown could lead to permanent changes including mass layoffs.
“We get rid of a lot of things that we didn’t want, and they’d be Democrat things,” Trump said.
Vought will be at the forefront of the Trump administration’s effort to fire federal bureaucrats en masse during the shutdown.
“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,” Office of Management and Budget director Russell Vought posted on social media.
The Gateway Development Commission, a New York-New Jersey panel overseeing the Hudson Tunnel Project, confirmed that disbursements have been paused for the time being.
“GDC has received notification from FTA regarding a pause in disbursements for the Hudson Tunnel Project. GDC complies with all federal laws and regulations, and will continue to do so throughout the project. We look forward to continuing our productive relationship with the Administration, FTA, FRA, and the US Department of Transportation,” GDC CEO Thomas Prendergast said in a statement.
“In the meantime, we remain focused on keeping the project on scope, schedule, and budget.”
Editor’s note: This article has been updated with new information from the GDC