President Donald Trump’s administration has frozen roughly $18 billion in federal funding for major New York City infrastructure projects.
In a statement, the Trump admin cited “diversity, equity, and inclusion” (DEI) requirements that are deemed “unconstitutional.”
Office of Management and Budget Director Russ Vought announced the decision on Wednesday.
Vought noted that the affected projects include the Hudson Tunnel under the Hudson River and the Second Avenue Subway expansion into Harlem.
“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.
“More info to come soon from [the U.S. Department of Transportation].”
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 Hudson Tunnel project has long been a priority for Senate Minority Leader Chuck Schumer (D-NY), who has called it “the nation’s largest public works project.”
Schumer, along with House Minority Leader Hakeem Jeffries (D-NY), has led Democrat resistance to Trump’s funding proposals in Congress.
Jeffries lashed out at Vought following the announcement.
“Again with this guy (and his baseless threats),” Jeffries wrote on X.
“Russ, you are the poster child for privilege and mediocrity. Get lost.”
Again with this guy (and his baseless threats).
Russ, you are the poster child for privilege and mediocrity.
Get lost. pic.twitter.com/NnLaTVs5SG
— Hakeem Jeffries (@RepJeffries) October 1, 2025
The administration’s move comes just days after Trump warned that federal funding for New York City could be in jeopardy if socialist candidate Zohran Mamdani wins November’s mayoral race.
Mamdani currently leads in polling after winning the Democrat primary.
Trump said Mamdani’s “fake Communist promises” would collapse without federal cash and vowed not to provide it.
“He is going to have problems with Washington like no Mayor in the history of our once great City,” Trump wrote on Truth Social earlier this week.
“Remember, he needs the money from me, as President, in order to fulfill all of his FAKE Communist promises.
“This ideology has failed, always, for thousands of years.
“It will fail again, and that’s guaranteed!”
While the freeze does not appear directly tied to the mayoral race, the White House has not yet detailed which DEI mandates triggered the hold.
Meanwhile, New York’s Democratic leaders are already clashing with the administration on multiple fronts.
On Tuesday, Transportation Secretary Sean Duffy blasted Gov. Kathy Hochul (D-NY) for allegedly allowing commercial driver licenses to be issued to illegal immigrants without names attached to the CDL.
“Kathy Hochul continues her campaign to make New York one of the most lawless states in the country,” Duffy said on X.
“ALL illegally issued CDLs endanger American families on the road.
“My recent emergency action to restrict CDLs will work to counteract these disastrous, America-Last policies.”
Kathy Hochul continues her campaign to make New York one of the most lawless states in the country.
As @GovStitt points out, ALL illegally issued CDLs endanger American families on the road. My recent emergency action to restrict CDLs will work to counteract these disastrous,… https://t.co/8WvdcgkouE
— Secretary Sean Duffy (@SecDuffy) October 1, 2025
With the funding freeze in place and a government shutdown fight still raging in Congress, New York Democrats face mounting pressure as Trump sharpens his focus on DEI mandates, immigration policy, and what the administration calls “America-Last” governance.
READ MORE – Chicago Mayor Melts Down: Trump Is an ‘Unstable Human Being’
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