The White House froze $18 billion in federal infrastructure funds allocated to New York City due to concerns over what it described as “unconstitutional” diversity, equity, and inclusion contracting principles. This move impacted major projects including the Hudson Tunnel Project and the Second Avenue Subway, drawing criticism from city and state leaders who argue the freeze endangers job creation and critical infrastructure development. The decision reflects heightened political tensions amid the ongoing government shutdown and disputes over federal spending priorities.