US Pauses $18B in NYC Transit Funding

The Trump administration, via OMB Director Russ Vought, announced a hold on roughly $18 billion in federal funding for New York’s Hudson River rail tunnel and the Second Avenue Subway, saying the money may be tied to unconstitutional diversity, equity and inclusion (DEI) practices. The Department of Transportation said it was conducting an administrative review of alleged practices but that the federal government shutdown furloughed civil‑rights staff who process reimbursements, halting disbursements. The White House framed the pause as a consequence of a Democratic-led shutdown and singled out New York lawmakers including Senate Minority Leader Chuck Schumer, drawing sharp criticism from Gov. Kathy Hochul, the mayor’s office and transit advocates. Local reporting and legal filings have questioned the mechanism and legality of withholding funds that had been largely committed and say the action has already prompted legal challenges over frozen transit grants. Officials warn the freeze risks further delaying commuter-critical projects that regional leaders consider vital to capacity between New Jersey and New York.