Overview

• OMB Director Russell Vought announced on X that roughly $18 billion in federal funding for New York infrastructure will be withheld during the budget standoff.
• The Transportation Department said an initial $300 million payment for a Manhattan subway expansion has been halted, with the subway project and the New York–New Jersey rail tunnel under review.
• The administration also flagged cuts to multibillion-dollar climate initiatives in several Democratic-led states.
• Officials linked the funding actions to new rules eliminating preferential treatment in federally funded contract awards, including for women- or minority-led firms.
• Agencies warned that furloughs from the partial shutdown could prolong reviews, while Democratic leaders Chuck Schumer and Hakeem Jeffries condemned the move as punitive for millions of commuters and essential workers.