The Trump administration announced Wednesday it was pausing federal funding for infrastructure projects in New York City, citing concerns about diversity, equity and inclusion (DEI) policies.

Office of Management and Budget (OMB) Director Russell Vought posted on social platform X that roughly $18 billion in funding for the city has been “put on hold to ensure funding is not flowing based on unconstitutional DEI principles.”

Vought later specified that the affected funding was for the Hudson Tunnel project, which helps connect New Jersey and New York, and the Second Avenue subway.

The Department of Transportation said it was reviewing whether any “unconstitutional practices are occurring” with those two projects in connection to a rule barring “race- and sex-based contracting requirements from federal grants.”

“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,” the department said in a statement.

The agency cautioned that the review could take longer than expected because some staff have been furloughed during the government shutdown.

A spokesperson for Mayor Eric Adams’s office did not immediately respond to a request for comment.

The funding freeze is the latest move by the Trump administration, and Vought specifically, to pause or claw back funding that does not align with the White House’s policy agenda.

President Trump signed an executive order upon taking office that sought to roll back DEI initiatives in the federal government and exert more control over federal grant recipients and federal contractors who have implemented DEI policies.

The timing of Vought’s announcement comes hours after the federal government shut down after lawmakers were unable to reach a deal on spending. The top two congressional Democrats — Senate Minority Leader Chuck Schumer (N.Y.) and House Minority Leader Hakeem Jeffries (N.Y.) — are both New York lawmakers.

New York filed a lawsuit Tuesday over a nearly $34 million federal grant for transit security being cut off. The lawsuit alleges that the Trump administration froze the funding because the state would not devote its law enforcement resources to immigration enforcement.

“Every New Yorker should be outraged. From the construction worker who could lose their job, to the commuter, stuck on a delayed train, to the families who rely on brave law enforcement officers to keep the safe,” New York Gov. Kathy Hochul (D) said in a statement.

“I will not sit idly by while Donald Trump defunds public safety and lets our infrastructure crumble,” Hochul added. “We will use every tool available to us to restore this funding and ensure that these critical infrastructure projects get built and keep every New Yorker safe.”

Trump has also threatened that New York City may not receive federal funding if Zohran Mamdani, a self-described democratic socialist, wins next month’s mayoral election.

Updated at 2:45 p.m. EDT