JUST IN: President Trump Freezes $18 Billion in Funding to New York City, Citing ‘Unconstitutional DEI Principles’

On the first day of a federal government shutdown, New York City is finding out how expensive its commitment to leftist principles of “diversity, equity, and inclusion” is going to be under President Donald Trump’s administration.

Russ Vought, the White House Office of Management and Budget director, took to social media on Wednesday to announce the administration has frozen federal funding for two major transportation projects in the Big Apple.



“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 in a post on the social media platform X. “More info to come soon.”

Specifically, he noted in a follow-up post, the money is for a new tunnel to carry passenger rail service under the Hudson River, the Hudson Tunnel Project, and a subway expansion project, known as the Second Avenue Subway.

Reporting on Vought’s announcement, the Associated Press raised the possibility that the target wasn’t just New York’s DEI positions, but Sen. Chuck Schumer, the New York Democrat and Senate minority leader whose party has shut down the government in a funding impasse.


For Schumer, the Hudson Tunnel Project has been a priority for years, as Politico reported in 2023. At the time, Schumer locked in a $6.88 billion federal grant for the project. It was a move Schumer admitted was in anticipation of the possibility that Trump won the 2024 election and Republicans won a Senate majority.

And, as CBS News noted, House Democratic Leader Hakeem Jeffries, who has gone to considerable lengths to try to slow the Trump agenda, is also a New York lawmaker, representing a Brooklyn district.

There’s almost certainly an element of shutdown politics in Vought’s decision. The timing alone makes that clear — painfully clear to New York Democrats.

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