US Suspends $18B New York Infrastructure Funding Over DEI Concerns

The Trump administration has suspended approximately $18 billion in federal funding for two major New York City infrastructure projects, the Hudson Tunnel Project and the Second Avenue Subway expansion, citing concerns over potentially "unconstitutional" diversity, equity, and inclusion (DEI) initiatives. Russ Vought, director of the Office of Management and Budget, confirmed that the funds are on hold pending an administrative review to determine if unconstitutional practices related to DEI are involved. This pause coincides with a government shutdown, which has also caused furloughs of civil rights staff responsible for the review, further delaying project reimbursements. Both projects rely heavily on federal funding and are significant for New York's transit infrastructure, with the Hudson Tunnel being critical for Amtrak and commuter traffic and the Second Avenue Subway extending transit service in Harlem. Democratic leaders, including Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, who represent New York, have criticized the funding freeze as a political move to inflict maximum pain and have been key advocates for these projects. The Trump administration's action has been seen as part of the broader conflict surrounding government funding and DEI policies during the shutdown.