Trump’s budget director Russell Vought announced that $18 billion in New York City infrastructure funding — including the Hudson Tunnel and Second Avenue Subway projects — is being put on hold to review contracts the administration claims were awarded under unconstitutional DEI principles.

The move coincided with the first day of the federal government shutdown, which also furloughed Transportation Department staff overseeing the projects.

Vought later said the Energy Department would cancel $8 billion in climate-related funding across 16 Democratic-leaning states.

Democrats, including Senate Majority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries, Gov. Kathy Hochul, and New Jersey lawmakers, denounced the cuts as political retaliation, while even some Republicans, like Rep. Mike Lawler, opposed the decision, NBC News has reported.

The shutdown, triggered by a budget impasse, has now escalated into a fight over critical infrastructure and climate funding.