NYC Sues to Restore Second Avenue Subway Funds

New York sues Trump administration over $60M in unpaid Second Avenue Subway reimbursements

2026-05-05, Moovit News Team

New York Sues Over Second Avenue Subway Funds

New York's MTA hasn't received federal reimbursements for the Second Avenue Subway extension since October, prompting state officials to file a lawsuit against the Trump administration. Governor Kathy Hochul announced the legal action Tuesday, accusing the federal government of illegally withholding billions in promised funding for the East Harlem expansion. Nearly $60 million in unpaid reimbursements are at stake, with officials warning the funding pause could delay contracts and increase costs.
Second Avenue Subway construction site with tunnel boring equipment and workers in Manhattan

Context

The Second Avenue Subway extension represents one of New York's most significant transit infrastructure projects, estimated to cost approximately $7 billion with about $3.4 billion expected from federal sources. Senator Chuck Schumer said the funding was secured through the Bipartisan Infrastructure Law and emphasized these projects are essential for New York's economy. The lawsuit follows a similar legal battle last month when a court ordered restoration of funding for the Gateway Tunnel Project. Transit agencies typically rely on federal reimbursements to maintain cash flow for large capital projects already underway.

Key Details

The MTA is seeking release of funds for the planned expansion into East Harlem, with construction currently underway despite the federal payment freeze. The project's total cost is estimated at $7 billion, with federal sources expected to contribute roughly half that amount at $3.4 billion. Officials warn that the funding pause could delay contracts, increase costs, and jeopardize the project's timeline. The U.S. Department of Transportation responded by stating it's committed to ensuring taxpayer dollars are spent responsibly.
MTA Second Avenue Subway station platform with Q train and passengers in Upper East Side Manhattan

Timeline

Governor Hochul emphasized that construction remains on schedule and on budget despite the federal funding freeze that began in October. The state filed the lawsuit Tuesday after months without receiving promised reimbursements. Officials didn't provide a timeline for when the legal action might be resolved or when federal payments could resume, though the similar Gateway Tunnel lawsuit resulted in a court order restoring funding last month.

Rider Impact

The Second Avenue Subway extension will eventually provide East Harlem residents with improved access to Manhattan's subway network, though the funding dispute could affect the project's completion timeline. Governor Hochul warned that the federal funding pause puts the entire project at risk despite construction continuing for now. Riders can track current Second Avenue Subway service and plan trips using Moovit, which provides real-time updates for MTA routes throughout New York City.