The Ritz Herald
© Kristy Cruz

U.S. Department of Transportation Review Targets New York’s Contracting Practices


U.S. Department of Transportation statement on review of New York’s discriminatory, unconstitutional contracting processes

Published on October 01, 2025

In a decisive move, the U.S. Department of Transportation (USDOT) has announced a review of New York’s controversial contracting processes, citing concerns over discriminatory practices that violate constitutional principles. An interim final rule (IFR) issued by USDOT prohibits race- and sex-based requirements in federal contracting, emphasizing a commitment to civil rights and responsible use of taxpayer funds.

Secretary of Transportation, Duffy, underscored the department’s stance, stating that using taxpayer dollars to subsidize contracts founded on discriminatory criteria is not only unconstitutional but also a misuse of resources. This review comes as New York pursues two major infrastructure projects: the 2nd Avenue Subway and the Hudson Tunnel, which are among the largest initiatives in the Western Hemisphere.

USDOT has initiated an administrative review of these projects to ascertain whether they are employing any unconstitutional practices. The department has made it clear that until the review is concluded, federal reimbursements—amounting to approximately $300 million for the 2nd Avenue Subway—will be on hold. Altogether, the outstanding federal funding for the involved projects approaches $18 billion.

Complicating matters, recent shutdowns led by Senate Majority Leader Chuck Schumer and Representative Hakeem Jeffries have delayed the review process further. The lack of an approved budget has resulted in the furlough of civil rights staff tasked with conducting the essential review, causing additional setbacks in the oversight of New York’s contracting practices.

This situation highlights the tensions surrounding federal funding and local practices, as USDOT aims to ensure compliance with civil rights standards while navigating the political landscape. As the review progresses, the American public remains eager for these critical infrastructure projects to be completed efficiently and effectively.

Associate Writer