The Trump administration said Wednesday that it was putting a hold on roughly $18 billion to fund a new rail tunnel beneath the Hudson River between New York and New Jersey and the city's expanded Second Avenue subway project because of the government shutdown.

The White House budget director, Russ Vought, said on a post on X that the step was taken due to the Republican administration’s belief that the money was “based on unconstitutional DEI principles,” a reference to diversity, equity and inclusion.

But an administration official, who was not authorized to discuss the matter publicly and insisted on anonymity to discuss the hold, said the government shutdown that started at midnight meant that the Transportation Department employees responsible for reimbursing workers on the projects had been furloughed, so the money was being withheld.

The suspension of funds is likely meant to target Senate Democratic leader Chuck Schumer of New York, whom the White House is blaming for the shutdown.

In a 2023 interview with The Associated Press, Schumer said he and then-President Joe Biden were both “giddy” over the rail tunnel project, adding that it was all they talked about in the presidential limousine as they rode to the site.

Gov. Kathy Hochul (D-NY) reacted to the news at a news conference about the federal government shutdown, told reporters, “The bad news just keeps coming” and that "they’re trying to make culture wars be the reason why.”

“That’s what a partnership with Washington looks like as we’re standing here. We’ve done our part, we’re ready to build, it’s underway,” she said. “And now we realize that they’ve decided to put their own interpretation of proper culture ahead of our needs, the needs of a nation.”

The Hudson River rail tunnel is a long-delayed project whose path toward construction has been full of political and funding switchbacks. It’s intended to ease the strain on a 110-year-old tunnel connecting New York and New Jersey. Hundreds of Amtrak and commuter trains carry hundreds of thousands of passengers per day through the tunnel, and delays can ripple up and down the East Coast between Boston and Washington

The Second Avenue subway was first envisioned in the 1920s. The subway line along Manhattan’s Second Avenue was an on-again, off-again grail until the first section opened on Jan. 1, 2017. The state-controlled Metropolitan Transportation Authority is working toward starting construction on the line’s second phase of the line, which is to extend into East Harlem.