Topline
The White House is putting $18 billion in New York City infrastructure funds on hold over “unconstitutional” diversity, equity and inclusion practices, according to Russell Vought, the director of the Office of Management and Budget.
Key Facts
Vought said on X that the agency was putting $18 billion of New York City infrastructure funds for the Hudson Tunnel and the Second Avenue Subway projects on hold to ensure the money was not going toward “unconstitutional” DEI practices.
The Department of Transportation sent letters Tuesday to New York to inform it that the two projects were under administrative review.
The DOT also said in a statement it was removing “race-and sex-based presumptions” it claims violate U.S. constitutional laws.
As a result of the federal government shutdown, review of the projects would take longer than normal to complete, the DOT said.
The statement comes on the first day of the shutdown after Congress failed to pass funding bills.
Crucial Quote
“Until USDOT’s quick administrative review is complete, project reimbursements cannot be processed, including a $300 million disbursement for the 2nd Avenue Subway. The remaining federal funding for these projects totals nearly $18 billion,” the Department of Transportation said.
Chief Critic
House Minority Leader Hakeem Jeffries, D-N.Y., clapped back after the announcement, telling Russell Vought to “get lost” in a social media post on X.
Key Background
Diversity, equity and inclusion policies have been a target for the Trump administration since the president took office. The administration has been deploying funding freezes to pause or reclaim funding that does not align with White House policy. President Donald Trump signed an executive order when he took office to stop DEI initiatives within the federal government, calling on federal contractors and federal grant recipients to review contracts and awards relating to DEI policies. The federal government said it spent $3 trillion on assistance in the 2024 fiscal year, according to a memo released this year by the Office of Management and Budget. Trump has also threatened that federal funding to New York City may be stopped in the event that Zohran Mamdani, the Democratic nominee for the New York mayoral race, wins the election.
Further Reading
