White House halts ~$26B in funding for infrastructure, climate projects

[Red traffic light on stack of money]
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The Trump administration has moved to freeze or cancel about $26B in funding for several infrastructure and climate-related projects across U.S. states amid the federal government shutdown.

Russell Vought, director of the Office of Management and Budget, announced on X that roughly $18B in New York City infrastructure projects were put on hold.

This is "to ensure funding is not flowing based on unconstitutional DEI (diversity, equity and inclusion) principles," he posted. "Specifically, the Hudson Tunnel Project and the Second Ave Subway."

The Department of Transportation said [https://www.transportation.gov/briefing-room/us-department-transportation-statement-review-new-yorks-discriminatory] the two projects are under administrative review to check for any unconstitutional practices. Project reimbursements can't be processed - including a $300M disbursement for the 2nd Avenue Subway - until the review is complete, which will take time given the federal government shutdown.

Vought also announced [https://x.com/russvought/status/1973450301236715838] that nearly $8B in funding for climate-related projects would be canceled in 16 states, including California and New York.

The Department of Energy said 321 financial awards supporting 223 projects would be terminated, resulting in savings of ~$7.56B for taxpayers.

"Following a thorough, individualized financial review, DOE determined that these projects did not adequately advance the nation's energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars," it added [https://www.energy.gov/articles/energy-department-announces-termination-223-projects-saving-over-75-billion].

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