Trump Administration Freezes $18 Billion for Key Transit Projects

In a significant development concerning the United States' largest transit initiatives, the Trump administration has put a halt to the disbursement of nearly $18 billion in funding for major transportation undertakings. This freeze affects projects like the Metropolitan Transportation Authority’s Second Avenue Subway and the Hudson Tunnel Project, part of the Gateway Program. The move, announced by Office of Management and Budget Director Russell Vought via X and the U.S. Department of Transportation, is intended to ensure funds do not support projects based on what the administration considers unconstitutional DEI principles.

Response from Smart Growth America

Beth Osborne, President and CEO of Smart Growth America, expressed strong criticism of the funding freeze, emphasizing the critical importance of these projects to the Northeast Corridor, which contributes to 20% of the U.S. GDP. "Everyone knows this project is extremely important... Get it done and stop making excuses," she stated, highlighting the long-standing need for the Hudson Tunnel Project.

The halt in funding seems to contradict efforts by transportation leaders who advocate for less federal intervention and more state leadership in project execution. Statements from Capitol Hill have emphasized the desire to "avoid top-down mandates from Washington, D.C." and to "let states lead," yet the current actions seem to diverge from these principles. Osborne warned that delays would only increase costs, referencing the ongoing Second Avenue Subway and Hudson Tunnel delays as cautionary examples.

Underlying Issues in U.S. Transportation

Transportation for America has been monitoring these administrative actions, pointing out the urgent needs facing the U.S. transportation sector. The nation lags in roadway safety compared to many countries, and the conditions of highways and bridges have seen little improvement over the past two decades, as noted by the American Society of Civil Engineers (ASCE). Additionally, congestion remains a growing problem even in cities experiencing population decline.

Osborne insisted on the importance of a well-maintained transportation system and called for action: “The Gateway project is a big part of that. Instead, USDOT is undergoing a paperwork exercise of unknown parameters and length. Stop studying it, talking about it, and reviewing it, and just build it already.” As previously recommended to Congress, she argued against a new bipartisan infrastructure deal if it leads to further bureaucratic hurdles, questioning the justification for such an approach.

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