JUST IN: Trump Admin Freezes $18 Billion in Federal Funding to NYC Infrastructure, Citing ‘DEI’

The Trump administration announced Wednesday that it is freezing roughly $18 billion in federal funding for New York City infrastructure projects — mere hours after a government shutdown began — citing concerns over the use of diversity, equity, and inclusion (DEI) principles in project planning and execution.

Russ Vought, director of the Office of Management and Budget (OMB), disclosed the action on X.com, stating, “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.” He later clarified that the projects affected include the Hudson Tunnel Project, which is aimed at repairing and expanding a key rail link under the Hudson River, and the Second Avenue Subway, a long-delayed expansion of Manhattan’s subway system.

Vought posted on social media:

OMB officials did not provide a detailed legal analysis or timeline for the release of the funds, but emphasized that the move is intended to ensure federal spending complies with what the administration considers constitutional guidelines regarding DEI.

The timing of the

announcement, on the morning after a government shutdown, is notable. The decision will almost certainly intensify political tensions in Washington, adding pressure to ongoing negotiations over the federal budget while raising questions about the long-term viability of major infrastructure projects in the nation’s largest city.

The Hudson Tunnel Project and the Second Avenue Subway have been in planning or construction for years, with costs already reaching tens of billions of dollars. Any delays are expected to have economic and logistical consequences, including extended construction timelines and potential cost overruns.

Vought indicated that further details would be released in the coming days, though it remains unclear when the freeze might be lifted or how the administration plans to address potential legal or political challenges.