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NY’s MTA Sues Trump Administration Over Frozen Subway Funds

The MTA alleges a breach of contract after the Trump administration withheld $60 million in federal funds, threatening to halt the $7.7 billion Second Avenue Subway expansion.

  • On Tuesday, the Metropolitan Transportation Authority sued the Trump administration in the U.S. Federal Court of Claims to recover roughly $60 million frozen for the Second Avenue Subway extension into East Harlem.
  • The pause centers on whether the USDOT reviewed if the project meets a new federal rule banning race- or gender-based requirements, after Vought halted a $3.4 billion grant citing 'unconstitutional DEI principles' in October.
  • Without federal funds, the MTA cannot award tunneling contracts or begin excavation at 106th Street, risking delays to a $7.7 billion project serving over 100,000 daily riders.
  • The MTA's suit follows a string of successful legal challenges that forced restorations, including a federal appeals court ruling last week and a February federal judge order to resume Gateway/Hudson Tunnel Project payments.
  • New York Governor Kathy Hochul said the state was 'forced to sue' after six months of frozen funds, warning the freeze "has put the entire project at risk" for the Second Avenue Subway promised to East Harlem since the 1940s.
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The U.S. government is said to have withheld nearly $60 million for the construction of new subway stations in New York, which is why the operator is taking action against the government.

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NY1 broke the news in New York, United States on Tuesday, March 17, 2026.
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