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Hochul Says Federal Government Restores Funding for Second Avenue Subway After Dispute

The agency will reimburse about $60 million after a review found the MTA changed contracting practices tied to minority- and women-owned businesses.

  • On Thursday, the USDOT agreed to release frozen funding for the Second Avenue Subway project, concluding a legal dispute after the MTA filed a lawsuit last month.
  • Federal officials had withheld funds since October to review the MTA's contracting practices, claiming the agency's use of "Diversity Compliance" evaluation criteria required investigation.
  • With the release of $58.6 million in frozen funds, CEO Janno Lieber said the agency can award a contract for excavating a new 106th Street station box.
  • After the MTA agreed to update its contracting selection criteria, the USDOT resumed processing reimbursements, prompting Gov. Kathy Hochul to write on X, "The freeze is over."
  • Expanding the Q train to 125th Street in East Harlem, the Second Avenue Subway Phase 2 project aims to serve 110,000 daily riders at three new stations.
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Trump administration restores funding to Manhattan subway project after NY sues

The Trump administration has agreed to resume funding a key Manhattan subway project after New York officials sued. The U.S.

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New York, Apr 16 (EFE).- Donald Trump's government announced this Thursday that it will pay the federal funds approved for a reform of the New York subway that it had paralysed for months to review the diversity policies of the responsible public agencies. The re-establishment of the funds occurs after the Metropolitan Transport Authority (MTA) sued Washington to unblock about 60 million dollars destined for the expansion of a subway line in the…

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VINnews broke the news on Thursday, April 16, 2026.
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