Trump administration freezes New York City infrastructure funds

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Director of the US Office of Management and Budget (OMB) Russell (Russ) Vought speaks to reporters outside the West Wing of the White House on July 17, 2025, in Washington, DC.

Andrew Caballero-Reynolds | Afp | Getty Images

The Trump administration has frozen about $18 billion for infrastructure projects in New York City to ensure that funding is not “flowing based on unconstitutional DEI principles,” a top official said Wednesday.

The funding is earmarked for the Hudson River Tunnel Project and the Second Avenue Subway project, said Office of Management and Budget Director Russell Vought.

Vought announced the freeze in posts on the social media site X.

“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.

DEI refers to diversity, equity and inclusion policies, which have become a target for the Trump administration.

“More info to come soon from @USDOT,” Vought added, referring to the U.S. Department of Transportation.

CNBC has requested comment from the DOT.

Vought’s announcement came on the first day of the shutdown of the U.S. government after Congress failed to pass stopgap funding bills that would have kept federal agencies and services operating at normal capacity for at least another seven weeks.

The funding freeze is not a result of the shutdown.

This is breaking news. Please refresh for updates.


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