The Metropolitan Transportation Authority (MTA) has issued a stern warning to the federal government, stating it will pursue legal action if over $58 million in federal funding for the Second Avenue subway expansion is not released by next week. This funding has been withheld since last year, impacting a critical infrastructure project for New York City.
The dispute centers on funds already awarded for Phase 2 of the Second Avenue subway, a project first proposed in the 1920s. The MTA emphasizes that the delay could jeopardize the entire expansion and force the diversion of funds from other essential transportation projects.
Key Takeaways
- MTA demands over $58 million in federal funding for Second Avenue subway.
- Legal action threatened if funds are not released by March 6.
- Project delays could impact East Harlem's long-awaited transit access.
- The dispute also links to broader federal funding issues for infrastructure.
Federal Funds Withheld for Key Projects
President Trump's administration began withholding federal funds for both the Second Avenue subway expansion and the Hudson River Gateway Tunnel project in October. Initially, this move appeared to be a tactic to pressure New York Democrats during a government shutdown.
Later, the U.S. Transportation Department cited a review of the MTA's race- and sex-based contracting requirements as the reason for suspending the funds. More recently, Mr. Trump suggested releasing Hudson River project funds in exchange for naming two major transportation hubs, Washington Dulles International Airport and Pennsylvania Station, after him.
Fast Fact
The Second Avenue subway expansion, Phase 1 of which opened in 2017, aims to extend Q train service into East Harlem, an area historically underserved by mass transit.
MTA Calls for Immediate Release of Funds
Janno Lieber, the MTA's chief executive, stated at a news conference on Wednesday that there are no legal grounds for the Transportation Department to hold the money. He stressed the urgency of the situation.
"It’s time for us to get this back on track, so we’re letting them know: Time’s up," Mr. Lieber said.
The MTA sent a letter to the Transportation Department on Wednesday, detailing the more than $58 million owed for the subway expansion. The authority warned that the refusal to pay has placed it in an impossible position.
Impact on Project Timeline and Other Priorities
The MTA's letter highlighted that the federal government's actions require the authority to divert critical transportation infrastructure funding from other priorities. This could have a ripple effect across New York's transit system.
The current holdup could significantly delay the entire Second Avenue subway project. This project is structured into four main parts. Contracts for the first two parts, which include utility relocation and assembling a tunnel-boring machine, have already been awarded.
The authority had plans to award the contract for the third part next month. This phase involves excavation work at the planned 106th Street station. However, the ongoing funding dispute may force these plans to be postponed.
Project Background
The Second Avenue line extension will run from 96th Street and Second Avenue to 125th Street and Lexington Avenue. The total cost is estimated at around $6.9 billion, with approximately $3.4 billion expected to come from federal contributions.
State Government Backs MTA Stance
Governor Kathy Hochul's office has also voiced strong support for the MTA's demand. Sean Butler, a spokesman for the Governor, issued a statement reinforcing the state's readiness to fight for the promised funding.
"Enough is enough — the federal government needs to stop playing games and release the funding they pledged to the Second Avenue subway immediately," Mr. Butler said. "East Harlem has been promised a subway connection for almost a century, and Governor Hochul will fight like hell to make sure this project gets built."
The project is expected to generate more than 70,000 jobs. It will also help reduce overcrowding on the 4, 5, and 6 train lines, which currently serve a large portion of Manhattan's East Side.
Federal Acknowledgment of Project Importance
Even Secretary Sean Duffy of the federal Transportation Department has previously recognized the importance of the Second Avenue subway project. The MTA's letter noted that Secretary Duffy stressed the need for the project to "move forward and move forward fast."
This previous acknowledgment further strengthens the MTA's position that the current withholding of funds lacks justification and directly contradicts earlier federal statements regarding the project's significance.
Precedent Set by Hudson River Tunnel Ruling
The Trump administration has faced similar legal challenges regarding infrastructure funding. Earlier this month, a federal judge blocked the White House from suspending billions of dollars for the Gateway project, a crucial Hudson River tunnel initiative.
That ruling helped New York and New Jersey recover $205 million in overdue funding. However, the earlier delays had already forced a halt to work on the project and led to the layoff of about 1,000 union workers. The MTA hopes to avoid a similar outcome for the Second Avenue subway expansion.
- The MTA is seeking over $58 million in federal funds.
- The funds are for Phase 2 of the Second Avenue subway expansion.
- A lawsuit is threatened if payment is not made by March 6.
- The project is crucial for East Harlem's transit access.
- Delays could impact job creation and other MTA priorities.





