"The move came one day after the Department of Homeland Security withheld transit security funding over New York's "sanctuary jurisdiction" policies. "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," Trump Budget Director Russ Vought posted on X at 10:04 a.m. on Wednesday. Vought specified that he meant the two marquee projects in a follow-up tweet:"
"In a statement that followed Vought's tweets, U.S. DOT said the two projects must be reviewed to comply with a new rule that the agency issued late on Tuesday night "barring race- and sex-based contracting requirements from federal grants." The rule, which appeared to have been drawn up so hastily that it did not include an effective date, cited a 2024 Kentucky federal judge's ruling that race may only be considered in a "narrowly tailored fashion." MTA and Gateway Development Commission officials never even had a chance to comply with the rule, since Duffy only issued it last night."
The federal government has placed roughly $18 billion in New York City infrastructure funding for the Hudson River Gateway Tunnel and the Second Avenue Subway on hold for administrative review. The action cites adherence to contracting requirements favoring women- and minority-owned businesses and a new U.S. DOT rule barring race- and sex-based contracting requirements from federal grants. The rule references a 2024 Kentucky federal judge's narrowing of permissible racial considerations. U.S. DOT said the projects will be reviewed to determine whether any unconstitutional practices are occurring, and officials had no opportunity to comply before the rule was issued.
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