Trump admin pauses $18B in transportation projects in NYC, cancels $8B in green energy projects

The Trump administration has paused $18 billion in transportation projects in New York City and canceled $8 billion in green energy projects, targeting blue states amid the government shutdown.

"Nearly $8 billion in Green New Scam funding to fuel the Left's climate agenda is being cancelled," Office of Management and Budget Director Russ Vought posted on X on Wednesday. "More info to come from @ENERGY. The projects are in the following states: CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT, WA."

The Energy Department said Wednesday that it terminated "321 financial awards supporting 223 projects, resulting in a savings of approximately $7.56 billion dollars for American taxpayers.

"Following a thorough, individualized financial review, DOE determined that these projects did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars."

The department added that "award recipients have 30 days to appeal a termination decision. Some of the projects included in this announcement have already begun that process."

California Gov. Gavin Newsom (D) said the Trump administration canceled "up to $1.2 billion" slated for a major hydrogen energy project, threatening tens of thousands of jobs, French news outlet AFP reported.

"In Trump's America, energy policy is set by the highest bidder, economics and common sense be damned," Newsom said, promising to keep pursuing a "clean energy strategy... no matter what DC tries to dictate."

Vought also announced on X on Wednesday, "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. More info to come soon from @USDOT."

He later added, "Specifically, the Hudson Tunnel Project and the Second Ave Subway."

The Transportation Department said Wednesday that subsidizing projects with "race- and sex-based contracting requirements... is unconstitutional, counter to civil rights laws, and a waste of taxpayer resources."

The funds would be withheld until a "quick administrative review is complete," according to the department.

"Thanks to the Chuck Schumer and Hakeem Jeffries shutdown, however, USDOT's review of New York's unconstitutional practices will take more time," the statement continued, adding that the department "has been forced to furlough the civil rights staff responsible for conducting this review."

Senate Minority Leader Chuck Schumer of New York posted on X on Wednesday regarding the pause on the projects, "Obstructing these projects is stupid and counterproductive because they create tens of thousands of great jobs and are essential for a strong regional and national economy."

New York Gov. Kathy Hochul (D) said that halting funding for "critical infrastructure projects" was "political payback and an attack on New York," according to AFP.

"Donald Trump has been clear: he is intent on using his reckless government shutdown to hurt the American people," Hochul said.

President Trump said on Tuesday, ahead of the shutdown, “We can get rid of a lot of things that we didn’t want, and they’d be Democrat things,” POLITICO reported.