Trump Freezes $18 Billion In NYC Projects Over DEI Spending
On the first day of the federal government shutdown, New York City is learning just how costly its commitment to “diversity, equity, and inclusion” policies could be under President Donald Trump’s administration.
Russ Vought, director of the White House Office of Management and Budget, announced Wednesday that roughly $18 billion in federal funding for two major New York City infrastructure projects has been frozen.
“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,” Vought wrote on X. “More info to come soon.”
The projects affected are among the most significant in New York’s long-term transportation planning. One is the Hudson Tunnel Project, which would add a new passenger rail tunnel under the Hudson River, a vital corridor for Amtrak and New Jersey Transit. The other is the long-delayed Second Avenue Subway expansion, a project that has been discussed for decades and is seen as critical to easing congestion on Manhattan’s East Side.
In a follow-up post, Vought confirmed both projects are on ice, immediately sparking debate over whether the freeze was primarily about DEI or about politics.
The Associated Press noted that the timing suggested more than policy. Senate Minority Leader Chuck Schumer, a New York Democrat, has made the Hudson Tunnel Project one of his signature priorities. In 2023, Schumer locked in a $6.88 billion federal grant for the tunnel. At the time, he acknowledged the funding was partly a safeguard in case Trump returned to the White House and Republicans reclaimed the Senate.
Both of those things have now happened.
House Democratic Leader Hakeem Jeffries, who represents Brooklyn, also has a stake in the projects and has been one of Trump’s most vocal opponents in Congress.
The decision to freeze funding hits directly at the priorities of both New York Democrats who are central to the shutdown fight.
CBS News highlighted how the move reverberated beyond policy debates. For Schumer and Jeffries, it was a political gut punch delivered on the same day Democrats were already facing pressure for allowing the shutdown to drag on.
The broader context is that Trump has made rolling back DEI spending a cornerstone of his second administration.
During his first term, Trump signed an executive order restricting DEI training in federal agencies, though it was later rescinded by President Joe Biden.
Now, with Trump back in office and Republicans holding a Senate majority, the administration is applying that principle to billions of dollars in federal spending.
Vought framed the decision as a matter of constitutional principle. Supporters of the freeze argued online that taxpayers should not be forced to fund projects or programs that prioritize ideological commitments over core infrastructure needs.
“This is what accountability looks like,” one Trump supporter wrote on X. “No more DEI slush funds disguised as public works.”
Critics, however, accused the White House of weaponizing federal funding to punish political opponents. Some Democrats argued that the timing — the very first day of the shutdown — made it clear the freeze was aimed squarely at Schumer and Jeffries.
“This isn’t about DEI, it’s about Donald Trump flexing power,” one Democratic strategist said.
For New Yorkers, the practical implications are serious. The Hudson Tunnel Project is part of the larger Gateway Program, which seeks to modernize a century-old rail system that millions of commuters depend on.
Delays in federal funding could set the project back years, raising costs and leaving existing tunnels vulnerable to breakdowns. The Second Avenue Subway, meanwhile, has been in the works since the 1920s and has already been plagued by delays and cost overruns.
Multiple people were killed in a major crash involving a tour bus on its way to Ohio from New Jersey and three semi-trucks on the Pennsylvania Turnpike early Sunday in the western part of the state that left dozens injured, according to officials.
The “extremely serious” crash happened around 3:40 a.m. Sunday in the highway’s westbound lanes in Mount Pleasant Township, located about 40 miles southeast of downtown Pittsburgh, according to Pennsylvania State Police Trooper Stephen Limani.
Limani said there were five fatalities and about 60 injuries as a result of the crash. Of those injured — ranging in age from 7 to “into their 60’s” — two are listed in critical condition, according to Limani.
Pennsylvania State Police said the tour bus was traveling westbound on the highway from Rockaway, New Jersey to Cincinnati on a downhill curve when it struck an embankment and rolled over. After the bus rolled over, it was then struck by two semi-trucks before a third truck collided with the two other semis involved in the initial crash. Another vehicle then also became ensnared in the crash site.
A total of six vehicles were involved in the crash, including a tour bus, three semi-trucks loaded with parcels and one private passenger vehicle, according to police.
Multiple people were killed after a major crash on the Pennsylvania Turnpike early Sunday. (KDKA-TV via NNS)
State police said that a total of 39 people were transported to area hospitals, including 28 sent to Frick Hospital in Mount Pleasant and 11 transported to Forbes Hospital in Monroeville.
Images from the scene showed mangled wreckage on the highway. A tour bus could be seen flipped on its side as a result of the crash.
The crash happened on the Pennsylvania Turnpike in Westmoreland County, around 40 miles southeast of Pittsburgh. (KDKA-TV via NNS)
Angela Maynard, a tractor-trailer driver from Kentucky, told the Pittsburgh Tribune-Review she was traveling eastbound with her co-driver on the turnpike around 3:30 a.m. when they came across the crash.
“It was horrible,” she said.
Maynard told the newspaper she saw someone on the ground, while another person was trapped in their truck.
“I walked toward the scene and saw one of the truck drivers laying [sic] near the barrier. I tried to keep him occupied, keep talking, until medical help arrived,” Maynard told the Tribune-Review. “He was in bad shape. He was floating in and out of consciousness.”
The bus, part of Z&D Tours, was filled with passengers mostly from other countries, according to Limani. He said two “most prominent” languages were Japanese or Spanish, but officials are still working on identifying those who were killed or injured due to many having documents and identification that are still at the crash scene.
“It’s just a lot going on when it comes to identifying them and contacting their loved ones,” he told reporters at a news conference Sunday afternoon.
Emergency crews respond to a fatal crash on the Pennsylvania Turnpike in Mount Pleasant Township early Sunday morning, Jan. 5, 2020. (WPIX TV via AP)
Limani said the Red Cross is assisting the victims of the crash, and “doing everything” to make it as comfortable as it can be to those impacted by the incident.
The crash caused all lanes to be closed in both directions on the highway between the Breezewood and New Stanton exits, roughly an 86-mile stretch of roadway.
Motorists traveling east are being urged to use Route 119 south US 40 east to Interstate 68 east (at Cumberland, Maryland) to Interstate 70 west and re-enter the turnpike at the Breezewood Interchange exit 161.
Westbound motorists are urged to use Route 30 west to Interstate 99 north to US Route 22 west to Route 66 south and re-enter the turnpike at exit 75 in at the New Stanton exit, according to KDKA-TV.
The Pennsylvania Turnpike can be seen empty after it was closed in both directions following a major crash early Sunday. (KDKA-TV via NNS)
It was not clear if the weather was a factor in the crash. The National Weather Service forecast for Westmoreland County early Sunday listed light unknown precipitation and an air temperature just below freezing.
“The one thing about traveling through Pennsylvania is that we have change in weather. It could be just because of our mountains, our hills. Just the way that our elevation changes,” Limani told reporters. “We were told that by some of the people that were driving, that the weather did start to change.”
Limani told reporters that weather conditions “could have played a factor” in the crash, but authorities will be able to “get to that answer” as the investigation progresses.
Pennsylvania Turnpike Chief Operating Officer Craig Shuey told reporters at a news conference Sunday afternoon that work crews had been treating the roadway since 9 p.m. due to wintry conditions in the region. Shey added that road crews were cycling treatment using either salt or cinders during the time period before the crash took place.
The National Transportation Safety Board (NTSB) has dispatched a board member and team of 13 people to the scene, according to Limani
One FedEx semi-truck was pictured among the trucks involved in the crash. In a statement to Fox News, a FedEx spokesperson said the company extends “our deepest condolences to the families of the individuals involved in this accident.”
“There is no higher priority for FedEx Ground than safety, and we are cooperating fully with investigating authorities at this time,” the spokesperson added.
The Associated Press contributed to this report.