Tipsheet

President Trump Freezes $18 Billion in Funding for NYC in Response to Schumer Shutdown

Dmitri Bolt
Dmitri Bolt  |  October 01, 2025 3:35 PM

President Trump has frozen $18 million in federal funding for New York City infrastructure projects, citing unconstitutional DEI "principles."

Russ Vought, the director of the Office of Management and Budget announced the funding freeze on Wednesday via X, writing, "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. More info to come soon from @USDOT" before adding that the funds had specifically been allocated for "the Hudson Tunnel Project and the Second Ave Subway."

CBS News reports that the Hudson Tunnel project will construct a new passenger rail tunnel beneath the Hudson River while repairing Amtrak and NJ Transit’s aging North River Tunnels. Meanwhile, the Second Avenue Subway initiative is set to push the Q line further into Harlem, complete with additional stations.

Amid Senator Chuck Schumer’s government shutdown, a project long touted as a top priority for the New York Democrat faces setbacks. Just as Schumer derailed a funding bill, the Trump administration is striking back.

House Minority Leader Hakeem Jeffries of New York responded to the funding freeze, telling Vought to "get lost." Jeffries has also been a vocal opponent of the GOP-led funding bill and helped to bolster Sen. Schumer's efforts to cause a government shutdown.

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