Trump freezes $18 billion in NYC infrastructure over DEI policies

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(The Center Square) — The Trump administration is freezing more than $18 billion in federal funding for infrastructure projects in New York City, citing concerns about diversity, equity and inclusion policies.

The cuts were announced in a social media post Wednesday by Office of Management and Budget Director Russell Vought, who said the funding was earmarked for the Hudson River Tunnel Project known as Gateway, and the Second Avenue Subway project. 

"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 on X.

The U.S. Department of Transportation issued a statement after Vought's post confirming the move and citing Secretary Sean Duffy's position that "subsidizing infrastructure contracts with taxpayer dollars based on discriminatory principles is unconstitutional, counter to civil rights laws, and a waste of taxpayer resources."  

The federal agency said the two mega-projects are "under administrative review to determine whether any unconstitutional practices are occurring" and until the review is complete "project reimbursements cannot be processed."

"The Department is focusing on these projects because they are arguably the largest infrastructure initiatives in the Western Hemisphere, and the American people want to see them completed quickly and efficiently," the agency said. 

Democratic Gov. Kathy Hochul was among those who blasted the latest round of cuts to the state by the Trump administration, saying its "political payback" that "puts every family across our state in harm's way." 

"Donald Trump has been clear: he is intent on using his reckless government shutdown to hurt the American people," she said in a statement. "In just 24 hours, his administration has defunded New York's law enforcement and counterterrorism efforts and halted $18 billion in funding from critical infrastructure projects in New York City. Every New Yorker should be outraged." 

The cuts came as the federal government shut down after Congress failed to pass stopgap spending bills that would have kept federal agencies funded at normal capacity for another seven weeks. The Trump administration has blamed the two top Democrats in Congress — Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries — for the shutdown. Both are New York Democrats.

The DOT said that its review of the projects will take longer than normal because of the government shutdown.

“Thanks to the Chuck Schumer and Hakeem Jefferies shutdown, however, USDOT’s review of New York’s unconstitutional practices will take more time, the agency said.

“Without a budget, the Department has been forced to furlough the civil rights staff responsible for conducting this review," it added. "This is another unfortunate casualty of radical Democrats’ reckless decision to hold the federal government hostage to give illegal immigrants benefits."