OMB Director Vought freezes $18 billion in congressionally-appropriated NYC infrastructure funds, citing pretextual DEI review
On October 1, 2025, the first day of the government shutdown, OMB Director Russell Vought announced a freeze of approximately $18 billion in Infrastructure Investment and Jobs Act funds earmarked for two major New York City projects — the Gateway Hudson River Tunnel and the Second Avenue Subway extension — claiming a review was needed to ensure funds were not "flowing based on unconstitutional DEI principles." The freeze blocked reimbursements already owed, including an immediately due $300 million disbursement, and targeted projects in districts represented by Senate and House Democratic leaders Chuck Schumer and Hakeem Jeffries. Critics and legal experts said the DEI rationale was pretextual and that the Impoundment Control Act prohibits such unilateral executive withholding of appropriated funds.
