The Trump Administration has put a freeze on roughly $18 billion in funding for New York City infrastructure projects, citing “unconstitutional DEI principles,” in a move local officials are calling another blatant act of political retribution against the Big Apple.
Russ Vought, director of the Office of Management and Budget, announced the move in a post on X Wednesday morning, specifying that the Hudson Tunnel Project and the Second Avenue Subway were among the projects shelved by the administration. The announcement came on the heels of a full government shutdown, following Trump and the Republican-controlled Congress’ failure to reach a budget deal that would have secured enough Democratic support to break a Senate filibuster.
The Associated Press has reported that the government shutdown, which came into effect at midnight, has caused funding to be withheld because federal Department of Transportation (DOT) employees responsible for reimbursing workers have been furloughed.
Vought said the federal DOT would release more information on the cuts later.
“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 said in a post on Wednesday morning.
DEI stands for “diversity, equity, and inclusion,” and generally refers to any program designed to provide opportunities and advancement for Americans who have been historically denied both due to long-standing racial, social, and economic barriers.
The measure has been roundly criticized by elected officials and community groups in New York.
Gov. Kathy Hochul accused the President of using a “reckless government shutdown” to hurt the American people, referencing Trump’s efforts to cut $187 million in Homeland Security Grant Program funding allocated for New York earlier in the week. A federal judge has temporarily blocked the Trump Administration from implementing the cuts, which would have impacted counterterrorism funding for several Democratic states.
Hochul said Wednesday’s move to suspend $18 billion in infrastructure funding was another example of “political payback,” describing the measure as “an attack on New York and its residents.”
“It puts every family across our state in harm’s way,” Hochul said in a statement Wednesday afternoon. “Every New Yorker should be outraged. From the construction worker who could lose their job, to the commuter stuck on a delayed train, to the families who rely on brave law enforcement officers to keep them safe.
“I will not sit idly by while Donald Trump defunds public safety and lets our infrastructure crumble. We will use every tool available to us to restore this funding and ensure that these critical infrastructure projects get built and keep every New Yorker safe.”
Senate Minority Leader Chuck Schumer blasted the move as “stupid and counterproductive,” stating that withholding funds “royally screws commuters” by threatening vital infrastructure projects.
“Obstructing these projects is stupid and counterproductive because they create tens of thousands of great jobs and are essential for a strong regional and national economy,” Schumer said in a post on X.
In a later statement issued alongside House Minority Leader Hakeem Jeffries, Schumer accused the Trump Administration of treating working people as “collateral damage” an an “endless campaign of chaos and revenge.”
“By blocking billions of bipartisan infrastructure dollars for the Gateway Tunnel and Second Avenue Subway, Trump isn’t hurting Democrats — he’s hurting the nurses, teachers, first responders, and everyday commuters from New York and New Jersey who rely on safe, reliable transit to get to work, school, to shop and home to their families,” Schumer and Jeffries said in a statement.
“The Gateway Tunnel and Second Avenue Subway aren’t political trophies — they are lifelines. They mean tens of thousands of good-paying union jobs.”
Both Schumer and Jeffries called on the President to work on bipartisan solutions to strengthen infrastructure across the country.
U.S. Rep. Nydia Velázquez, meanwhile, described the move as “flat-out illegal,” adding that it was an attack on the people of New York.
“Every day, millions of New Yorkers rely on this infrastructure to go about their daily lives. These are not pet projects; they are essential to our national economy and the functioning of our city,” Velázquez said in a statement.
Velázquez said Trump’s use of DEI to justify the decision was “nonsense” and accused Trump of using infrastructure as a weapon to punish his political opponents.
She called on New York Republicans to “decide where they stand” in the wake of the cuts.
“Will they call out this abuse, or will they back down while Donald Trump sabotages projects that their own constituents rely on?”
John J. McCarthy, MTA chief of policy and external relations, accused the Trump Administration of “inventing excuses” to delay some of the most important infrastructure projects in the United States. McCarthy alleged that the federal government had informed the MTA that it wanted to “immediately” review whether the agency was in compliance with rules it had learned about only “moments ago.”
Lisa Daglian, executive director of the Permanent Citizens Advisory Committee to the MTA, contended that the move was an effort to punish New York and criticized Vought for announcing the measure in a social media post.
“The White House’s edict via tweet to withhold $18 billion for the Hudson River Tunnel Project and phase two of the Second Avenue Subway – combined with their decision to withhold critical antiterrorism and public safety money for the MTA – are the latest examples of their blatant efforts to punish New York,” Daglian said.
Daglian added that the measure is a threat to both the American economy and the country’s national security.
“But it’s about more than New York. History has shown that building and expanding key infrastructure projects are key to a strong economy and our national security. This double blow is completely contrary to what we know to be true,” she added.
Daglian said tens of thousands of jobs hang in the balance if the projects do not move forward and said the measure threatens potentially billions of dollars in economic activity.
“These jobs and essential projects support not just New York but the entire region, and the working men and women who depend on them,” Daglian said. “We stand with Governor Hochul and the New York Congressional Delegation and urge them to fight this unconstitutional injustice with every ounce of their strength.”
Although New York did not vote for President Trump in 2024, state taxpayers of all political persuasions paid more than $320 billion in federal tax dollars last year, representing over 6% of the entire nation’s federal tax dollars.
Riders Alliance Policy & Communications Director Danny Pearlstein added that the Trump administration’s “defunding” of the Hudson River Tunnel and Second Avenue Subway projects sends a larger message than dollars and cents.
“Desperate to end the shutdown crisis they created, distant federal bureaucrats are again putting thousands of New York jobs and millions of commutes on the line,” Pearlstein said. “It’s no wonder selfish figures would target public transit because it brings people together, fosters community, and proves that our government can work for us rather than tear us apart.”
Thomas Prendergast, CEO of the Gateway Development Commission (GDC), which oversees the Hudson Tunnel Project, insisted that GDC is in compliance with all federal rules and regulations.
“We look forward to continuing our productive relationship with the Administration, FTA, FRA, and the US Department of Transportation,” Prendergast said. “In the meantime, we remain focused on keeping the project on scope, schedule, and budget.”
