White House Freezes $18 Billion in NYC Funding as Shutdown Hits

Vehicles approach the Holland Tunnel in Jersey City, New Jersey.

Photographer: Michael Nagle/Bloomberg

The White House is halting $18 billion in New York infrastructure funding due to concerns over diversity and inclusion practices and as the first day of a federal shutdown grinds government work to a halt.

Russell Vought, the director of the US Office of Management and Budget, cited the “unconstitutional DEI principles” as the reason for the funding freeze in a post on X on Wednesday. “Specifically, the Hudson Tunnel Project and the Second Ave Subway,” he said.