WASHINGTON — The White House is freezing about $18 billion in funding for two major Big Apple transportation projects to make sure the federal cash isn’t going toward “unconstitutional” Diversity, Equity and Inclusion (DEI) initiatives, officials announced Wednesday.
“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,” White House Office of Management and Budget Director Russ Vought posted on X, just hours after the federal government went into a partial shutdown.
Vought added that the Hudson Tunnel project and Second Avenue subway extension were the two projects affected.
The White House is freezing about $18 billion in funding for two major Big Apple transportation projects, announced hours after the federal government went into a partial shutdown. Kevin P. Coughlin / Office of th
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
Federal Transit Authority chief and former New York Congressman Mark Molinaro penned near-identical letters to MTA chairman Janno Lieber and Gateway Development Commission CEO Tom Prendergast on Sept. 30, alerting them that federal funding for both the Second Avenue Subway expansion and Hudson River tunnel project would be delayed pending a review for discriminatory practices.
The letters followed the publication of an interim final rule (IFR) banning race- and sex-based programs being funded by the US Department of Transportation from operating in a discriminatory fashion.
But a source familiar with the decision told The Post that funding will be stopped for both projects “due to [Sen. Chuck] Schumer’s shutdown” and that DOT employees responsible for funding the projects and reimbursing contractors have now been furloughed.
Federal funding for both the Hudson River tunnel project would be delayed pending a review for discriminatory practices. AP
“This administration has concerns that the contracts awarded are inconsistent with civil rights laws and the constitution because they were given based on racist DEI,” the source said. “Thus, a review of contracts awarded under Biden is required. However, the review is also paused because of the Schumer shutdown.”
A DOT spokesperson reiterated Transportation 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 spokesperson added that DOT’s review of New York’s “unconstitutional practices” will require additional time, and that absent a budget, the department has furloughed the civil rights staff responsible for conducting the review.
“Roughly $18 billion in New York City infrastructure projects have been put on hold,” White House Office of Management and Budget Director Russ Vought announced. Nathan Posner/Shutterstock
Gov. Kathy Hochul quickly pivoted to discussing the infrastructure projects during a press conference blaming Republicans for the government shutdown. Getty Images
“This is another unfortunate casualty of radical Democrats’ reckless decision to hold the federal government hostage to give illegal immigrants benefits.”
At a press conference Wednesday blaming Republicans for the government shutdown, Gov. Kathy Hochul quickly pivoted to the announcement the feds would be withholding cash from the infrastructure projects.
“They’re trying to make culture wars the reason why,” she told reporters from the Battery. “We’re ready to build. It’s underway, and now we realize that they decide to put their own interpretation of proper culture ahead of our needs, the needs of the nation. You can’t make this up, folks, it just keeps getting worse and worse.”