In a dramatic development, the Trump administration has blocked nearly $18 billion in infrastructure funding for New York City, pointing to what it describes as “unconstitutional” diversity, equity, and inclusion (DEI) policies,  as the Daily Wire reports.

This action, revealed on Wednesday, stalls key projects such as the Hudson Tunnel and Second Avenue Subway, drawing intense criticism from New York’s Democratic leadership.

The week started with heightened tensions as President Trump voiced concerns about New York’s political direction, focusing on the mayoral race in a Monday post on Truth Social.

Political sparks fly amid mayoral race

Trump criticized Zohran Mamdani, a leading candidate in the November election and a self-identified socialist, warning of financial consequences should the far-left hopeful be elected.

In his post, Trump declared, “He is going to have problems with Washington like no Mayor in the history of our once great City. Remember, he needs the money from me, as President, in order to fulfill all of his FAKE Communist promises.”

He continued, “He won’t be getting any of it, so what’s the point of voting for him? This ideology has failed, always, for thousands of years. It will fail again, and that’s guaranteed!”

Massive funding halt targets key projects

Despite the timing of Trump’s remarks, administration sources suggest the funding suspension announced on Wednesday is not directly connected to the mayoral contest.

The decision to freeze roughly $18 billion hinges on objections to unspecified DEI initiatives, which the administration labels as problematic, though details remain vague.

Office of Management and Budget Director Russ Vought shared the news on X, stating, “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 [the U.S. Department of Transportation].”

Transit upgrades face uncertain future

The withheld funds were intended for critical endeavors, such as the Hudson Tunnel, which plans a new rail link under the Hudson River and repairs to existing tunnels for Amtrak and NJ Transit.

Also impacted is the Second Avenue Subway, an extension of the Q line into Harlem that includes building new stations to enhance transit options.

Senate Minority Leader Chuck Schumer (D-NY), who has championed the Hudson Tunnel and obtained significant federal backing for it, now confronts a major obstacle with this funding pause.

Democrats' response intensifies

New York Democratic Party figures have fired back, with House Minority Leader Hakeem Jeffries (D-NY) sharply rebuking Vought following the funding announcement.

Jeffries stated, “Again with this guy (and his baseless threats), Russ, you are the poster child for privilege and mediocrity. Get lost.”

Meanwhile, both Schumer and Jeffries have clashed with the Trump administration over broader federal spending plans, rejecting Republican proposals in recent discussions, while Transportation Secretary Sean Duffy, on Tuesday, accused Gov. Kathy Hochul of issuing commercial driver’s licenses to undocumented immigrants without proper ID, prompting his emergency action to limit such licenses.