Trump administration to release Second Avenue subway funding after MTA lawsuit

The Trump administration on Thursday agreed to release federal funding to go toward the New York Metropolitan Transportation Authority (MTA) project to extend the Second Avenue subway following a lawsuit to restore funding for the extension.

A Department of Transportation (DOT) spokesperson told The Hill that President Trump and Transportation Secretary Sean Duffy agreed to a deal to ensure the money “will not fund unconstitutional DEI initiatives, including illegal race- and sex-based contracts which historically cause project costs to balloon.”

“This has always been about securing the best deal for the American taxpayer and ensuring their dollars are spent efficiently and fairly,” the spokesperson said in a statement.

New York Gov. Kathy Hochul (D) praised the outcome after the legal fight.

“We took the Trump Administration to court after they illegally froze funding for the Second Avenue Subway,” she wrote in a post on social platform X. “Today, they backed down. The freeze is over. For East Harlem and every New Yorker who relies on our subways, release our money immediately.”

Senate Minority Leader Chuck Schumer (D-N.Y.) said the president “lost. Again.”

“The Second Avenue Subway is back on track and will be delivering expanded service to New York commuters from East Harlem, Uptown, the Bronx, and beyond – whether Trump likes it or not,” he wrote on X.

Office of Management and Budget Director Russell Vought said in October that roughly $18 billion in funding for New York City was “put on hold to ensure funding is not flowing based on unconstitutional DEI principles.” He later specified that this affected funding for the Hudson Tunnel project connecting New Jersey and New York and the Second Avenue subway.

The MTA sued the administration to unfreeze the funding, telling the administration that it complied with the DOT’s policy changes. New York state agencies require part of construction contracts to go toward minority- and women-owned businesses, the Gothamist reported. But the administration’s crackdown on diversity, equity and inclusion (DEI) policies led to funding freezes across the country unless state agencies made concessions.

The state agency told the administration that it complied with the new federal rules after a letter to MTA Chair Janno Lieber on Thursday stated that the DOT “uncovered troubling information” about those contracts siphoning off funds toward businesses, the outlet reported.

The MTA’s plan takes an original proposal to extend Second Avenue from the 1920s and will stretch the Q into East Harlem with three new train stations in the neighborhood, the Gothamist wrote. The service is scheduled to open in 2032.

Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More Administration News

Senate GOP losing patience with Speaker Johnson as DHS faces crisis

US-Iran talks take sudden, uncertain shift with sweeping claims on both sides

Iranian state news outlet questions foreign minister’s ‘unexpected tweet’ ...

Lutnick blasts Canada on trade: 'They suck'

White House, FBI looking into case of missing scientists: ‘No stone will be ...

GOP Sen. Katie Britt: House-passed bill to extend Haitian refugee status DOA in ...

Hegseth shares air rescue group’s ‘Pulp Fiction’ prayer at Pentagon ...

The Memo: Trump’s claims on Iran feed optimism — and confusion

Judge rejects Trump lawsuit to block Hawaii from filing climate lawsuit 

Obama ramps up pressure in Virginia redistricting battle: ‘We’re counting ...

Popular weight loss medications linked to hidden side effects, study finds

Altman attack suspect suggested ‘Luigi’ing some tech CEOs’ in online chat

Collins, Tillis signal shift on Trump war powers if Iran war hits 60-day mark

Trump revels in Tucker Carlson’s ‘freefall’ in GOP opinion polling 

Thomas warns intolerance among younger generations will ‘infect’ courts

Confusion over whether the Strait of Hormuz is open

White House budget director Vought declines to tell senators cost of Iran war

Iran says Hormuz Strait 'completely open'; Trump says blockade 'in full force'

© The Hill