Trump Freezes $18 Billion In NYC Projects Over DEI Spending

On the first day of the federal government shutdown, New York City is discovering just how costly its devotion to “diversity, equity, and inclusion” (DEI) policies can be under President Donald Trump’s second term.

Russ Vought, director of the White House Office of Management and Budget, announced Wednesday that approximately $18 billion in federal funding earmarked for two of the city’s largest infrastructure projects has been halted.

“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 posted on X. “More info to come soon.”

The freeze affects two major projects: the Hudson Tunnel Project—intended to add a new rail tunnel under the Hudson River to support Amtrak and New Jersey Transit—and the Second Avenue Subway expansion, a long-promised project aimed at reducing congestion on Manhattan’s East Side.

In a follow-up post, Vought confirmed both initiatives were on ice, igniting a firestorm of debate over whether the move was motivated more by constitutional principle or by politics.

The Associated Press pointed out that the decision carries major political overtones. Senate Minority Leader Chuck Schumer (D-NY) has made the Hudson Tunnel one of his hallmark priorities, securing a $6.88 billion federal grant for it back in 2023. At the time, Schumer himself admitted the deal was designed as a safeguard in case Trump returned to the White House with a Republican Senate majority.

That safeguard is now gone.

House Democratic Leader Hakeem Jeffries (D-NY), another vocal Trump opponent, also has a vested interest in the projects. The White House’s decision to freeze funding is a direct blow to both Schumer and Jeffries—two Democrats who now find themselves at the center of the shutdown fight.

CBS News noted that the funding freeze was more than just a policy statement; it was a political strike that landed on the very day Democrats were being blamed for dragging the shutdown into a full-blown crisis.

For President Trump, the move is consistent with his promise to eliminate taxpayer-funded DEI programs, which he views as unconstitutional and divisive. During his first term, Trump issued an executive order to restrict DEI training in federal agencies—a move reversed under President Joe Biden. Now, with Trump back in office and Republicans in control of the Senate, his administration is applying that same principle to billions in federal spending.

Vought framed the freeze as a constitutional necessity. Supporters rallied behind the decision online, applauding the administration for putting the brakes on taxpayer dollars being funneled into ideological projects.

“This is what accountability looks like,” one Trump supporter wrote on X. “No more DEI slush funds disguised as public works.”

Democrats, however, accused Trump of weaponizing federal dollars to punish political enemies. One Democratic strategist fumed, “This isn’t about DEI, it’s about Donald Trump flexing power.”

Beyond the politics, the impact for New Yorkers could be significant. The Hudson Tunnel Project is part of the larger Gateway Program meant to modernize a century-old rail system that millions of commuters rely on. Delays could drive costs higher and leave the already fragile system vulnerable to collapse. The Second Avenue Subway, meanwhile, has been in limbo for nearly a century and continues to face delays and spiraling expenses.

Still, for Trump and his administration, the message is clear: federal money will not be weaponized in the name of progressive ideology.