The Trump administration has halted approximately $18 billion in infrastructure funding for New York City projects, citing issues with diversity, equity, and inclusion (DEI) policies. Russell Vought, director of the U.S. Office of Management and Budget (OMB), announced the freeze on October 1, 2025, stating the decision aimed to prevent funding from being allocated based on what he called “unconstitutional DEI principles.”
The move impacts major projects such as the Hudson River Tunnel Project and the Second Avenue Subway. Vought emphasized that the funding pause is unrelated to the ongoing U.S. government shutdown, which began the same day after Congress failed to pass stopgap funding bills. Further details are expected from the U.S. Department of Transportation.
“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,” Vought stated in a social media post. The decision has sparked debate over the role of DEI initiatives in federal funding decisions.
