The Trump administration has frozen approximately $18 billion in federal funding for two large New York City infrastructure projects: the Hudson River Tunnel Project and the Second Avenue Subway project. Office of Management and Budget (OMB) Director Russell Vought announced the freeze on social media platform 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.”The big picture: The Department of Transportation (DOT) clarified that Secretary Sean Duffy’s stance on the Disadvantaged Business Enterprise (DBE) program is clear: “Subsidizing infrastructure contracts with taxpayer dollars based on discriminatory principles is unconstitutional, counter to civil rights laws, and a waste of taxpayer resources.”DOT issued an interim final rule barring race- and sex-based contracting requirements from federal grants. Letters were sent to New York officials informing them that the two mega projects are subject to administrative review to determine if any unconstitutional practices are occurring. DOT emphasized the importance of these initiatives: “The Department is focusing on these projects because they are arguably the largest infrastructure initiatives in the Western Hemisphere, and the American people want to see them completed quickly and efficiently.”Go deeper: Until the administrative review is completed, reimbursements for the projects cannot be processed, including a pending $300 million payment for the Second Avenue Subway.