The Trump administration has halted $18 billion in New York City infrastructure funding over concerns regarding diversity, equity, and inclusion (DEI) practices. Office of Management and Budget (OMB) Director Russ Vought said the money has been withheld to block “unconstitutional DEI principles.” The decision has faced criticism for its timing and for perceived targeting of Democratic leaders Sen. Chuck Schumer (D-NY) and Rep. Hakeem Jeffries (D-NY).
Vought wrote, “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.”
The Department of Transportation (DOT) confirmed funding for the Second Avenue Subway expansion and Hudson Tunnel project will stay paused during reviews of race- and sex-based contracting. DOT Secretary Sean Duffy argued that taxpayer money should not fund DEI initiatives.
Duffy stated that “subsidizing projects that have DEI programs in place was a waste of taxpayer resources.”
The freeze is tied to political tensions, as Schumer and Jeffries back both projects. Schumer previously secured a federal grant for the Hudson Tunnel, stressing its importance to New York’s infrastructure.
The Second Avenue Subway, largely funded by the MTA, has been delayed by financial issues and federal reviews. The Hudson Tunnel project seeks to boost rail capacity between New York and New Jersey with a new tunnel under the Hudson River.
The Trump administration’s freeze blocks a $300 million disbursement for the subway project and remains in place during the shutdown.
Laura Mitchell covers U.S. politics & news for content partner Modern Newsstand LLC.
