The Trump administration froze an estimated $18 billion in funding for two New York City infrastructure projects amid a concern over “unconstitutional DEI principles.”
“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,” Office of Management and Budget Director Russell Vought announced. “Specifically, the Hudson Tunnel Project and the Second Ave Subway.”
The Department of Transportation released a statement on the development, saying it has issued an interim final rule banning “race- and sex-based contracting requirements from federal grants.”
“USDOT issued letters to New York to inform them that their two mega projects – the 2nd Avenue Subway and Hudson Tunnel – are under administrative review to determine whether any unconstitutional practices are occurring,” USDOT explained, noting these projects are in focus “because they are arguably the largest infrastructure initiatives in the Western Hemisphere, and the American people want to see them completed quickly and efficiently.”
“Until USDOT’s quick administrative review is complete, project reimbursements cannot be processed, including a $300 million disbursement for the 2nd Avenue Subway. The remaining federal funding for these projects totals nearly $18 billion,” the statement adds.
The interim final rule (IFR) “ensures that the U.S. Department of Transportation
(DOT or Department) operates its Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) Programs (collectively, Programs) in a nondiscriminatory fashion—in line with law and the U.S. Constitution.”
The IFR “removes race and sex-based presumptions of social and economic disadvantage that violate the U.S. Constitution.”
