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Portions of the Department of Transportation are currently in shutdown/furlough status due to a lapse in appropriations. Please continue to monitor this page for updates on DOT’s operating status.

U.S. Department of Transportation Statement on Review of New York’s Discriminatory, Unconstitutional Contracting Processes

Wednesday, October 1, 2025

WASHINGTON, D.C. – The U.S. Department of Transportation issued the following statement:

USDOT issued an interim final rule (IFR) barring race- and sex-based contracting requirements from federal grants.

Secretary Duffy’s position on the DBE program is clear – subsidizing infrastructure contracts with taxpayer dollars based on discriminatory principles is unconstitutional, counter to civil rights laws, and a waste of taxpayer resources.

USDOT issued letters to New York to inform them that their two mega projects – the 2nd Avenue Subway and Hudson Tunnel – are under administrative review to determine whether any unconstitutional practices are occurring.

The Department is focusing on these projects because they are arguably the largest infrastructure initiatives in the Western Hemisphere, and the American people want to see them completed quickly and efficiently. 

Until USDOT’s quick administrative review is complete, project reimbursements cannot be processed, including a $300 million disbursement for the 2nd Avenue Subway. The remaining federal funding for these projects totals nearly $18 billion. 

Thanks to the Chuck Schumer and Hakeem Jefferies shutdown, however, USDOT’s review of New York’s unconstitutional practices will take more time. Without a budget, the Department has been forced to furlough the civil rights staff responsible for conducting this review.

This is another unfortunate casualty of radical Democrats’ reckless decision to hold the federal government hostage to give illegal immigrants benefits.

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