On the first day of the federal government shutdown, the Trump administration froze roughly $18 billion in federal funding tied to New York City infrastructure projects [npr.org#5][abcnews.go.com#3][cbsnews.com#4]. The Office of Management and Budget said the review aims to ensure funds are not awarded based on unconstitutional DEI principles, and the hold includes pausing reimbursements pending review [alternet.org#2]. Projects cited include the Hudson Tunnel Project and the Second Avenue Subway [alternet.org#2].
Highlights:
- Scope of hold: Officials cited roughly $18 billion in federal funding connected to New York City infrastructure placed on hold on the shutdown’s first day [npr.org#5][abcnews.go.com#3][cbsnews.com#4].
- Named projects: OMB Director Russell Vought indicated the hold applies to the Hudson Tunnel Project and the Second Avenue Subway [alternet.org#2].
- Stated rationale: OMB said the review is to ensure funding is not flowing based on unconstitutional DEI principles [alternet.org#2].
- Payment processing: The hold includes a refusal to process reimbursements pending review, with the shutdown affecting processing [alternet.org#2].
- Political context: NPR notes the freeze impacts the home base of Democratic leaders Chuck Schumer and Hakeem Jeffries [npr.org#5].
The administration isn't even trying to go through Congress with this. It's trying to do it by fiat. It's trying to do it by itself. – Miles Taylor
Perspectives:
- Office of Management and Budget: Says the pause is to ensure funding is not awarded based on unconstitutional DEI principles. (alternet.org)
- Andrew Gounardes, New York State Senator: Called the move "extortion, plain and simple.". (alternet.org)
- Miles Taylor, former DHS chief of staff: Predicted loud backlash from first responders and law enforcement groups over the funding hold. (alternet.org)
- NPR reporting context: Notes the freeze hits the home base of top Democratic congressional leaders. (npr.org)
Sources:
- 'Blow up in their faces': Ex-Trump staffer says police likely 'very angry' over this move – alternet.org
- Trump administration puts on hold $18 billion in funding for New York City infrastructure projects – abcnews.go.com
- Trump administration freezes $18 billion in infrastructure funding to New York – cbsnews.com
- Trump freezes $18 billion in funding for NYC, home to key Democratic leaders – npr.org
