An Unprecedented Assault on Greater New York’s Vital Transportation Infrastructure

Greater New York is facing an unprecedented assault on its vital transportation infrastructure.  According to an announcement by OMB Director Russell Vought on X and later confirmed by the US Department of Transportation, $18 billion in funding for both the Second Avenue Subway and the Gateway Program’s Hudson Tunnel Project is being put “on hold” pending “administrative review.”  This announcement comes one day after it came to light that the Department of Homeland Security is planning to deny New York State tens of millions of dollars for transportation security under the Homeland Security Program and Urban Area Security Initiative.  

Transportation is the lifeblood of greater New York, and these projects are vital to the economies of not only the region, but the nation. Indeed, the Gateway Program is an investment in capacity right at the heart of the Northeast Corridor, by far the busiest part of the country’s rail network.  The current North River Tunnels under the Hudson already carry more than 200,000 people every day, a number poised to grow dramatically once Gateway opens, and desperately need to be rehabbed due to damage from Hurricane Sandy. Phase two of the Second Avenue Subway is projected to carry more than 110,000 people every day.  These numbers are why Congress saw fit to appropriate funds for these important projects.  It is no exaggeration to say that every significant delay for these programs translates into millions of dollars in lost economic value.

This halt will inevitably cost the taxpayer.  In capital construction, time is quite literally money, and this is doubly true for projects already under construction. Work is already underway for both Gateway and Phase 2 of the Second Avenue Subway; this interruption may force workers in the field to put down their tools. Work schedules, equipment orders, site preparations, and the like are now uncertain.  The only guarantee is that when work starts again, the price tag will be higher.

This entire situation is the result of last-minute rule making clearly designed to leave the New York region stuck in a Catch-22.  The administration claims that federally required regulations dating back to the Reagan administration are now considered illegal.  The MTA followed these regulations in order to be eligible for funding.  To then turn around and claim that following those rules makes the program ineligible for funding leaves the region in a no-win scenario.  The administration could have discussed concerns with regional leaders and come to some sort of understanding. Instead, the DOTs proposed new rules were created with such haste that, at the time of the announcement of the funding pause, they had not even been entered into the Federal Register.

Congress created the programs and appropriated the funds for these projects, recognizing their importance to the region and the nation. Whatever the reason for stopping the funds, infrastructure is far too important to be used for political games.