1 min read

Contractors keep digging despite $18B funding freeze

8/10/2025, 15:52

The Trump administration has frozen nearly $18 billion in federal funding for two of New York’s largest infrastructure projects, though contractors say work continues for now.

The Trump administration has frozen nearly $18 billion in federal funding for New York’s Gateway Program and Second Avenue subway, citing a review of diversity contracting requirements under the federal Disadvantaged Business Enterprise program.

A $300 million disbursement for the Second Avenue subway is on hold until the review concludes. The DOT said it aims to ensure taxpayer dollars are not subsidizing contracts based on discriminatory principles.

Project leaders say work continues uninterrupted. Tutor Perini, the contractor on Gateway, said it anticipates no impact on daily operations and is making no adjustments to schedules or workforce, Construction Dive reports.

“That’s where the worry comes in”

However, industry leaders warn prolonged uncertainty could disrupt planning. Carlo Scissura, president of the New York Building Congress, said contractors need stability for material orders and staffing.

“When [contractors] feel like, at any given time, government could do something like this, that’s where the worry comes in,” Scissura said.

The Associated General Contractors of America warned that prolonged delays could impact change orders, inspections and project approvals.