On the first day of the federal government shutdown, New York City is learning just how costly its commitment to “diversity, equity, and inclusion” policies could be under President Donald Trump’s administration.
Russ Vought, director of the White House Office of Management and Budget, announced Wednesday that roughly $18 billion in federal funding for two major New York City infrastructure projects has been frozen.
“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.”
The projects affected are among the most significant in New York’s long-term transportation planning. One is the Hudson Tunnel Project, which would add a new passenger rail tunnel under the Hudson River, a vital corridor for Amtrak and New Jersey Transit. The other is the long-delayed Second Avenue Subway expansion, a project that has been discussed for decades and is seen as critical to easing congestion on Manhattan’s East Side.
In a follow-up post, Vought confirmed both projects are on ice, immediately sparking debate over whether the freeze was primarily about DEI or about politics.
The Associated Press noted that the timing suggested more than policy. Senate Minority Leader Chuck Schumer, a New York Democrat, has made the Hudson Tunnel Project one of his signature priorities. In 2023, Schumer locked in a $6.88 billion federal grant for the tunnel. At the time, he acknowledged the funding was partly a safeguard in case Trump returned to the White House and Republicans reclaimed the Senate.