❓WHAT HAPPENED: The Trump administration has frozen approximately $18 billion in infrastructure funding for New York City projects, citing concerns over unconstitutional diversity, equity, and inclusion (DEI) policies.
👤WHO WAS INVOLVED: Russell Vought, Director of the U.S. Office of Management and Budget (OMB), and New York City officials.
📍WHEN & WHERE: Announced on October 1, 2025, from Washington, D.C., impacting New York City infrastructure projects.
💬KEY QUOTE: “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,” said Vought.
🎯IMPACT: The funding freeze affects the Hudson River Tunnel Project and the Second Avenue Subway project, with further updates expected from the U.S. Department of Transportation.
Russell Vought, Director of the U.S. Office of Management and Budget (OMB), announced on Wednesday that the Trump administration has frozen approximately $18 billion in infrastructure funding for New York City. The decision was made to ensure that funding is not distributed based on what Vought described as “unconstitutional DEI principles.”
The funding freeze affects major projects such as the Hudson River Tunnel Project and the Second Avenue Subway project. Vought made the announcement via posts on social media platform X (formerly Twitter).
“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 wrote. He indicated that more information would be forthcoming from the U.S. Department of Transportation (USDOT).
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. More info to come soon from @USDOT.
— Russ Vought (@russvought) October 1, 2025
The announcement coincided with the first day of a U.S. government shutdown after Democrats in Congress refused to pass stopgap funding bills. However, Vought clarified that the funding freeze is unrelated to the government shutdown.
Join Pulse+ to comment below, and receive exclusive e-mail analyses.