The Trump administration has frozen $18 billion in infrastructure projects in New York City, citing the ongoing government shutdown driven by Democrats.
Office of Management and Budget Director Russ Vought confirmed Wednesday that federal funding for the Hudson Tunnel Project and the Second Avenue Subway is on hold.
He argued that taxpayer money must not be tied to unconstitutional diversity, equity, and inclusion contracting requirements.
Trump administration puts on hold $18 billion in funding for New York City infrastructure projects https://t.co/al9uHuNHyS
— The Voice Newspapers (@VoiceNewspapers) October 1, 2025
The Department of Transportation said both projects are under administrative review to determine whether race- and sex-based contracting rules were improperly applied. The pause includes a $300 million disbursement for the subway expansion.
https://t.co/Rd4pn6wGWA pic.twitter.com/1DAzAG3U6k
— U.S. Department of Transportation (@USDOT) October 1, 2025
Transportation officials blamed Democrats, led by Sen. Chuck Schumer and Rep. Hakeem Jeffries, for stalling the review.
Furloughs at the agency’s civil rights office, they said, have left critical staff unable to complete oversight. The administration criticized Democrats for what it called reckless political tactics.
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TIPP Staff
TIPP Staff
