The Trump administration is being dragged into court docket once more within the newest funding struggle over a key New York transportation undertaking.
The MTA on Tuesday filed a lawsuit that accuses the federal authorities of withholding $60 million in contractually obligated cash for the practically $7 billion extension of the Second Avenue Subway from the Higher East Aspect to East Harlem.
“We intend to get each cent of what has been promised and albeit, based mostly on the agreements, what’s owed to New Yorkers,” Janno Lieber, MTA chairperson and chief govt stated Tuesday whereas testifying earlier than the Metropolis Council. “And we’re not afraid to struggle for it in court docket, simply as we’ve got efficiently taken on the feds over congestion pricing.”
The newest authorized scrap comes weeks after a federal decide rejected the Trump administration’s makes an attempt to terminate the Manhattan vehicle-tolling plan launched in January 2025. It additionally comes on the heels of development resuming final month on Gateway, the large Hudson River rail tunnel undertaking whose funding had been frozen by the feds final 12 months, main to a different court docket battle and a quick shutdown to work on websites in New York and New Jersey.
Gov. Kathy Hochul stated Trump had been warned that extra authorized motion was seemingly over the freeze on funding. The lawsuit landed because the subway growth undertaking is on the verge of getting a contract awarded for excavation on Second Avenue.

“We advised Donald Trump that if he didn’t restore the funding for this undertaking, we’d see him in court docket — right this moment, we’re doing simply that,” Hochul stated in an announcement. “Similar to Gateway, Donald Trump has two choices: restore the cash now, or watch for a decide to pressure him to.”
The second section of extending the Q line from 96th Avenue to new stations at 106th, 116th and one hundred and twenty fifth streets would ship on decades-old commitments to carry subway service to East Harlem after elevated strains over Second and Third avenues had been demolished within the mid-Twentieth century. The first stretch — with stations at 72nd, 86th and 96th streets — opened Jan. 1, 2017.
“Second Avenue Subway is an extremely worthy undertaking, lengthy overdue transit justice for East Harlem, promised because the Nineteen Forties,” Lieber stated. “And Section 2 is properly underway.”
Two of the 4 contracts have already been awarded for the subway growth undertaking, which is partially funded by income from congestion pricing.
The primary contract was awarded in January 2024 for the relocation of underground utilities, whereas one other adopted final August for development of a brand new tunnel north from 116th Avenue. The second phase of the Second Avenue undertaking may also make use of a tunnel constructed within the Seventies that has sat dormant for greater than half a century.
It as an alternative has turn into the most recent New York megaproject to be twisted up with the Trump administration, which has been vital of development prices. The feds put funding on ice final fall for the Second Avenue line, in addition to Gateway, questioning whether or not the initiatives adjust to a a USDOT rule on deprived enterprise enterprises.
“USDOT is dedicated to making sure hardworking taxpayer {dollars} are being spent responsibly,” a spokesperson for the federal Transportation Division stated in an announcement. “We’re contemplating all authorized avenues.”
Brian Fritsch, of the Everlasting Residents Advisory Committee to the MTA, cited the feds’ spotty monitor report on court docket fights over congestion pricing and the Gateway rail tunnel undertaking, including, “This crap is getting previous.”
“You’d assume [U.S. Transportation] Secretary [Sean] Duffy would get uninterested in shedding lawsuits for clearly illegal habits, however right here we’re once more,” he stated. “We’re assured the court docket will discover within the MTA’s favor and applaud Gov. Hochul and MTA management for standing as much as Washington once more.”
The Second Avenue Subway was initially proposed in 1929 and Hochul has extra just lately floated the concept of extending the road west beneath one hundred and twenty fifth Avenue.
Lieber stated the funding freeze has but to have an effect on ongoing development on the following section, however stated the time for the feds to pay up is now.
“I’m very assured the Second Avenue undertaking goes to maintain shifting ahead,” he stated. “We simply must get via this course of with the federal authorities.”

