'Extortion — plain and simple': Trump admin ripped for $18B NYC funds freeze

U.S. President Donald Trump gestures after signing executive orders related to artificial intelligence during the Winning the AI Race Summit in Washington D.C., U.S., July 23, 2025. REUTERS Kent Nishimura

The Trump administration is under fire after Office of Management and Budget Director Russell Vought froze $18 billion in federal funds for New York City infrastructure projects, saying the move — announced just hours after the federal government shutdown amid a battle with Democrats — is intended “to ensure funding is not flowing based on unconstitutional DEI principles.”

Coincidentally, the move affects the hometown of House and Senate Democratic leaders, one day after they met — unsuccessfully — with President Donald Trump in the Oval Office in an attempt to avoid a government shutdown. The President subsequently posted several “deep fake” videos considered racist, mocking the Democratic leaders.

Director Vought, one of the chief architects of Project 2025, later added that the roughly $18 billion freeze would apply to the Hudson Tunnel Project and the Second Avenue Subway project. He did not elaborate on how “DEI” was involved.

“Hours before the shutdown on Tuesday, Trump had threatened that he could ‘get rid of a lot of things’ that would prominently affect Democrats,” NBC News reported.

Reuters’ David Shepardson reported that the hold on the “mega” infrastructure projects includes a refusal to “process reimbursements, pending review that it says is impacted because of the government shut down.”

Critics blasted the move.

“Is the Queens Midtown Tunnel woke now?” asked Professor of History Aaron Astor.

“Trump Republicans are so cruel and incompetent that they’re now playing games with billions in funding for critical infrastructure projects, putting the literal foundations of our city at risk. This is extortion, plain and simple,” wrote New York Democratic State Senator Andrew Gounardes.

“How can you negotiate with Republicans in Congress to fund the government when as soon as you reach an agreement you know that Trump’s OMB director will just withhold the funds?” wrote attorney Ron Filipkowski, the editor in chief of MeidasTouch News.

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