MTA funding release set for Second Avenue Subway

MTA subway funding is expected to be released by the Trump administration. This is reported by the railway transport news portal Railway Supply.

The money would be released as federal reimbursements owed to the MTA for the project. That project is the Metropolitan Transportation Authority’s New York City Transit Second Avenue subway.

As Progressive Railroading reported, the MTA sued the administration in March. The agency said $58.6 million had been illegally withheld since October 2025. Also, the money covered federal grant and loan reimbursements.

Second Avenue Subway Phase 2 moves forward

Meanwhile, on April 16, the U.S. Department of Transportation said an agreement had been reached. It said the funding would be released. That came shortly before a federal judge was scheduled to hear arguments in the case. In a letter, USDOT stated it had found “troubling information that MTA contractors considered race and sex as part of its bidding and contract process, but that the transit agency had agreed to make changes.”

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Separately, an MTA statement last week included comments from MTA Chair and CEO Janno Lieber. He said the agency can now move ahead with Second Avenue Subway Phase 2. “The MTA can now confidently forge ahead with Second Avenue Subway Phase 2,” Lieber said in the statement. “The billion-dollar contract approved at our March board meeting is being awarded and contractors are mobilizing right away.”

Federal reimbursements and the wider funding dispute

It was the second lawsuit brought by New York government offices and project partners. The case centered on paused federal funding reimbursements. Earlier this year, New York and New Jersey successfully sued the administration. The case involved withheld funding for the Hudson Tunnel project.

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