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Trump halts money for NYC infrastructure projects, says minority contract rules are unconstitutional
By
Stephen Nessen
Published Oct 1, 2025
Modified Oct 1, 2025
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Stephen Nessen
By
Stephen Nessen
Published Oct 1, 2025
Modified Oct 1, 2025
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The Trump administration moved to slash billions of dollars in federal funding for New York’s two largest infrastructure projects on Wednesday, arguing the state violates the Constitution by mandating some of the work goes to minority- and women-owned businesses.
The MTA’s Second Avenue subway extension into East Harlem and the Gateway program’s new Hudson River train tunnels are both subject to cuts, U.S. Office of Management and Budget Director Russell Vought said in a post on X.
The feds agreed to a $3.4 billion grant under former President Joe Biden to help fund the subway extension, covering nearly half of its projected $7.7 billion cost. The former administration also signed off on $6.8 billion to fund the Gateway project.
Vought said those two grants are part of roughly $18 billion earmarked for New York City infrastructure projects that have been put on hold because of the state’s “unconstitutional DEI [Diversity, Equity and Inclusion] principles."
Both projects are already under construction and the feds have delivered a portion of the promised grants for each.
The U.S. Department of Transportation formalized the order, stating the funding would be withheld for the projects while the administration reviews "whether any unconstitutional practices are occurring.”
New York state law requires many public works projects to set aside funding for minority- and women-owned businesses. Trump officials have argued since January the practice is unconstitutional.
The federal transportation department suggested in a statement that requiring minority- and women-owned businesses to receive work for the projects makes construction less efficient.
“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.
Rev. Al Sharpton said the directive was a direct attack on Black and brown New Yorkers.
“With one jab he [Trump] sought to weaken the gold-standard requirements for Black, women and other businesses who historically have not had their shot at contracts,” Sharpton wrote in an email. “Then he dealt a crushing left hook to Black and brown New Yorkers who were counting on better subway access to East Harlem, as well as New Jersey residents who deserved safe access under the Hudson River. Even by Donald Trump’s standards, he has reached a new low in his crusade to push disadvantaged communities deeper into the margins.”
Gov. Kathy Hochul quickly criticized the decision, but did not say whether New York would sue over the move, which came the same day the federal government shut down after Congress failed to pass a new funding bill.
“You can't make this up, folks. Just keeps getting worse and worse,” she said. “They're trying to make culture wars be the reason why, culture wars over the tens of thousands of jobs that we've created with these infrastructure products that were literally talked about for decades, that we finally could get moving, create jobs and opportunity and take care of infrastructure challenges that others were too timid to take on in the past."
“As we're standing here, we've done our part, we're ready to build, it's underway," Hochul added. "And now we realize that they've decided to put their own interpretation of proper culture ahead of our needs, the needs of a nation."
Rachael Fauss, an analyst at the good government group Reinvent Albany, said the federal order would likely be shot down in court.
“ The administration changing the rules arbitrarily, midstream, and there's real harm to the MTA as a result of this and New York City as a whole because of the transit security funding,” she said.
Fauss added the Trump administration's move this week to cut security funding over New York City sanctuary city policies is also likely illegal.
David Glasgow, the executive director of NYU's Meltzer Center for Diversity, Inclusion and Belonging, said Trump's move is part of a larger effort to claw back progress on racial justice across the country.
“ The assault that they're engaged in on DEI is part of a backlash to DEI and its ascent after the murder of George Floyd in 2020,” Glasgow said.
MTA spokesperson John McCarthy accused the Trump administration of "inventing excuses to delay one of the most important infrastructure projects in America.”
“The federal government wants to immediately ‘review’ our compliance with rules they told us about moments ago," McCarthy wrote in a statement. "We’re reviewing their tweets and press releases like everyone else."
Thomas Prendergast, CEO of the Gateway Development Commission that's leading the Hudson River tunnel project, said the work "complies with all federal laws and regulations" and will continue despite the Trump administration's push to cut its funds.
This story has been updated with additional information.
Tagged
Kathy Hochul
Politics
donald trump
economy
manahttan
new york city
new york state
transportation
Stephen Nessen
Stephen Nessen covers transportation. Since 2008 he has reported on everything from Occupy Wall Street, the rebuilding of the World Trade Center site, Hurricane Sandy, to Trump’s campaign for president. His transportation reporting has taken him everywhere from the MTA’s secret Rail Control Center to the gleaming subways of Seoul. Got a tip? Email [email protected].
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Gothamist is funded by sponsors and member donations
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