The Trump administration on Wednesday announced a freeze on roughly $18 billion allocated for New York City infrastructure projects, including a new rail tunnel under the Hudson River connecting New York and New Jersey and the city’s Second Avenue subway expansion, citing the ongoing federal government shutdown.

White House budget director Russ Vought said in a post on X that the funds were withheld due to the administration’s view that the projects were “based on unconstitutional DEI principles,” referring to diversity, equity, and inclusion.

An unnamed administration official also noted that the shutdown, which began at midnight, led to furloughs of Transportation Department staff responsible for reimbursing workers on these projects, effectively delaying the release of funds. The department confirmed the furloughs, stating that civil rights staff involved in project reviews had been temporarily suspended.

New York Governor Kathy Hochul criticized the move, saying, “The bad news just keeps coming,” and accused the federal government of putting “culture wars” ahead of public needs.

The Hudson River rail tunnel, long delayed, is designed to ease congestion on a 110-year-old tunnel heavily used by Amtrak and commuter trains, while the Second Avenue subway line, first proposed in the 1920s, is set to extend into East Harlem in its next phase.

The funding suspension is seen as targeting Senate Democratic leader Chuck Schumer of New York, with the White House blaming him for the government shutdown.