OMB Director Russ Vought Halts $18B in New York City Infrastructure Funds Over “Unconstitutional” DEI Concerns
The White House has dropped a bombshell on New York today. The Office of Management and Budget, led by Director Russ Vought, announced that about 18 billion dollars in federal funding earmarked for two massive infrastructure projects in New York City—namely the Hudson River rail tunnel and the Second Avenue subway extension—will be frozen, pending a review into whether the funds support programs tied to diversity, equity, and inclusion principles.
Russ Vought, speaking on behalf of the administration, framed it as a legal safety check, saying the pause ensures “funding is not flowing based on unconstitutional DEI principles.” But the timing and targets of the freeze are unmistakable. The projects are deeply connected to the home turf of Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, both New York Democrats who have long supported these very infrastructure efforts.
This pause comes amid a partial government shutdown. The U.S. Transportation Department has already delayed reimbursements—300 million dollars related to the subway project is currently being withheld—because staff who would normally process it are furloughed.
Critics are already crying foul. Legal experts warn that what Vought is attempting touches on deeply contested territory of executive power versus congressional authority. The 1974 Impoundment Control Act restricts the ability of the President to unilaterally withhold funds Congress has already approved. Some note past actions by Vought and this administration to freeze or withhold funds broadly citing DEI or policy reasons, moves that were met with legal backlash and partial reversals.
In New York, reactions are swift and angry. Governor Kathy Hochul condemned the freeze, calling it a politically motivated stunt rather than a serious infrastructure decision. She argued the state was prepared to build and deliver—but now their projects are being entangled in culture war politics.
For commuters, residents, and agencies already billing on tight timelines, the freeze injects uncertainty. The Hudson Tunnel is essential for connecting New York with New Jersey and for easing congestion on a heavily traveled rail line. The Second Avenue subway extension would serve East Harlem, improving access and service for thousands. These aren’t small vanity projects—they’re lifelines for transit and infrastructure in one of America’s busiest urban corridors.
The battle lines are clear now: will an administration review process tied to DEI claims block the will of Congress and local authorities? Or will courts step in, restore funding, and reaffirm the constitutional limits on executive discretion over spending? One thing is certain: this freeze is not just about New York. It’s a test case for how far an administration can go in reinterpreting funding rules and asserting new checks on programs once considered settled.
As the dust settles, many eyes will be on court rulings, congressional pushback, and whether Vought can defend this freeze legally. Meanwhile, New York’s infrastructure—and its politics—are caught in the crossfire.
