NEW: Trump Strikes Back At Schumer, Axes Major Project In NYC

Senate Minority Leader Chuck Schumer (D-NY) is facing a nightmare scenario as President Donald Trump delivers a direct blow to one of his biggest political trophies — a massive New York City infrastructure plan worth nearly $20 billion. As the government shutdown stretches into its third week, Trump’s decision to pull federal support from Schumer’s prized projects has sent ripples through Washington and New York.

At the center of the clash are two projects long championed by Schumer: the Gateway Program, a new rail tunnel linking New York and New Jersey, and Phase 2 of the Second Avenue Subway, which would extend the subway line north into Harlem. The Trump administration announced that roughly $18 billion in federal funding for these projects will be withheld indefinitely, citing concerns over waste, equity-based spending guidelines, and what the White House called “a lack of fiscal responsibility” by Democratic leadership.

Trump portrayed the move as a pointed strike at Schumer, saying, “We’re cutting a $20 billion project that Schumer fought for 15 years to get… and I’m cutting the project. The project’s gonna be dead.”

Schumer, meanwhile, reacted with alarm and talk of pushback. He blasted the move as “vindictive, reckless and foolish,” arguing that the decision would hurt “hundreds of thousands of New York and New Jersey commuters” and cost “good-paying jobs.”

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The announcement comes amid an intensifying shutdown standoff, as negotiations between congressional Democrats and the White House remain frozen. Trump has accused Democrats of deliberately prolonging the shutdown to score political points, while Schumer and his allies claim the president is using the budget impasse to punish blue states.v

But the political optics tell a different story. Schumer has long positioned himself as New York’s ultimate dealmaker — the man who could bring federal dollars home. Trump’s announcement undermines that image, portraying Schumer as powerless in his own state and vulnerable in the ongoing shutdown battle.

The Gateway Program, first proposed over a decade ago, has been one of Schumer’s top priorities. It would replace the aging, 113-year-old Amtrak tunnels under the Hudson River that serve as a vital artery for commuters between New Jersey and Manhattan. Schumer secured billions in federal commitments during the Biden administration, but with Trump back in the Oval Office, the future of those funds is in jeopardy.

White House Budget Director Russell Vought defended the decision, saying the administration is reviewing all infrastructure projects tied to “diversity, equity, and inclusion mandates” and other “nonessential” spending conditions.

The move also fits neatly into Trump’s strategy during the shutdown — shifting the pressure squarely onto Democrats. With federal workers furloughed, national parks closed, and negotiations stalled, Trump is framing the showdown as a test of leadership and fiscal discipline. Targeting Schumer’s signature project sends a message to other Democratic leaders: no one’s priorities are safe while the government remains unfunded.

Political analysts say Trump’s gamble could pay off. Meanwhile, New York officials are scrambling to contain the fallout. The Metropolitan Transportation Authority (MTA) has confirmed that work on the Second Avenue Subway will continue for now, using state and local funding. However, delays and layoffs could occur if federal support doesn’t resume soon.

For Trump, the move is a political double play — a way to squeeze Democrats in Washington while reinforcing his “America First” message to voters nationwide. For Schumer, it’s an embarrassing setback that strikes at the heart of his political brand.