MTA Threatens Legal Action Over Subway Funds

MTA warns of lawsuit if $58M for Second Avenue subway isn’t released, risking project delays and cost overruns.

MTA Threatens to Sue Federal Government Over Second Avenue Subway Funding

The Metropolitan Transportation Authority has warned the federal government that it will sue if over $58 million in overdue funding for the Second Avenue subway’s East Harlem extension is not released by next week. The agency said the freeze has put the project’s schedule and budget at risk.

Construction on the subway’s second phase, first proposed in the 1920s, had recently begun. In October, President Trump froze federal funds for the project and a major Hudson River tunneling plan. The funds were initially held to pressure New York Democrats on a government shutdown. The U.S. Transportation Department later said the suspension was due to a review of the MTA’s race- and gender-based contracting requirements.

MTA Chair Janno Lieber said a key excavation contract cannot be awarded without the federal money, which could delay work and increase costs. The Trump administration has not commented.

A federal judge recently ordered the release of similar funds for the Hudson River tunnel after New York and New Jersey sued to restore support for that project.