MTA Sues to Secure Second Avenue Subway Funding

MTA files federal lawsuit seeking $60M in withheld reimbursements for Q line extension

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MTA Sues Feds for $60M Over Second Avenue Subway

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New York's MTA filed a federal lawsuit last week seeking nearly $60 million in reimbursements for the Second Avenue Subway extension, escalating a funding dispute that's threatened the long-delayed project. The legal action targets the U.S. Department of Transportation over withheld payments for the Q line extension from 96th Street to 125th Street. President Donald Trump told Spectrum News he supports finishing the project, though he appeared unaware of the impending court battle.

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The Second Avenue Subway project originally began in the 1970s but was halted due to New York City's fiscal crisis. The current phase extends the Q line northward through Manhattan's Upper East Side, part of a $7 billion effort to ease congestion on the overcrowded Lexington Avenue line. In October, the U.S. Department of Transportation stopped paying its $3.4 billion share following a rule change regarding contracting based on sex and race. The MTA claims it complied with the new requirements but never received a response from the federal government, and funding wasn't restored.

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The lawsuit seeks reimbursement for work already completed on the extension, which will add new stations between 96th and 125th streets. Transit officials said the federal funding freeze has created uncertainty around project timelines, though construction continues. The MTA's legal filing argues the agency met all federal compliance requirements and is entitled to the committed funding. Jamie Torres-Springer, MTA Construction and Development president, said the agency remains committed to delivering the project on time and on budget despite the federal dispute.

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The MTA Board plans to approve a $1 billion contract Wednesday to excavate the 106th Street Station, officials said. The contract will also connect existing tunnels to 96th Street, advancing construction even as the funding dispute heads to court. Officials haven't said whether the lawsuit will delay other project milestones or how long the legal process might take.

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Riders on the existing Second Avenue Subway line between 96th Street and 63rd Street won't see service changes during the legal dispute, officials said. The extension will eventually provide new transit options for Upper East Side and East Harlem neighborhoods when completed. Moovit provides real-time updates for Q line service and alerts about Second Avenue Subway construction impacts.