<h1>Federal budget officials place $18 billion hold on funding for major rail tunnel and city subway expansion over DEI concerns</h1> Federal budget officials placed an approximately $18 billion hold on funding for a major metropolitan rail tunnel and a separate city subway expansion, citing that the allocations were tied to allegedly unconstitutional diversity, equity and inclusion policies; an administration source also said the hold was prompted by a federal shutdown that furloughed transportation employees responsible for processing reimbursements for the projects. The action pauses disbursements for ongoing construction and could delay work pending resolution of legal and administrative issues.