Administration Freezes $18B in NYC Infrastructure Funding

The Trump administration announced a freeze of roughly $18 billion in federal funding for two major New York City projects — the Hudson Tunnel Project and the Second Avenue Subway — saying the pause is to ensure money is not allocated based on “unconstitutional DEI principles.” OMB Director Russ Vought made the announcement and the Department of Transportation issued an interim final rule barring race- and sex-based contracting requirements while sending letters to New York and pausing reimbursements, including a cited $300 million disbursement. The move came hours after a government shutdown and the White House explicitly blamed New York’s Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries. Critics say officials have offered no public evidence the projects used DEI contracting and view the action as politically motivated. Officials and analysts warn the hold could delay long-running projects, raise costs, affect millions of commuters in New York and New Jersey, and intensify legal and budgetary fights in Washington.