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3/18/2026
The Metropolitan Transportation Authority yesterday sued the Trump administration, accusing it of withholding $58.6 million in federal reimbursements for the MTA's Second Avenue Subway project in New York City.
The MTA filed the breach-of-contract complaint in the U.S. Court of Federal Claims, arguing that the federal government has failed to pay for work already completed under a federal grant tied to the project, Politico reported.
The lawsuit marks the second time the MTA and New York Gov. Kathy Hochul have been involved in legal action against the Trump administration for holding up federal funding for transportation projects. Last month, construction on the $16 billion Hudson River rail tunnel project was paused after the Trump administration in October 2025 ordered a freeze on reimbursements related to previously awarded federal grants and loans.
The Gateway Commission, which is overseeing the Hudson Tunnel project, and the states of New York and New Jersey sued the federal government for halting that project's funding and won.
MTA has made "enormous progress" on the Second Avenue subway project, Hochul said yesterday in a prepared statement.
"But Donald Trump's unlawful funding pause has put this entire project at risk. His actions alone have jeopardized the commutes of over 100,000 New Yorkers and the jobs of thousands of union workers, but New York will not back down," Hochul said. "Just like Gateway, Donald Trump has two options: Restore the money now, or wait for a judge to force him to.”
In October 2025, Trump's budget director Russ Vought said on X.com that $18 billion for the Hudson Tunnel and Second Avenue Subway projects would be on hold "to ensure funding is not flowing based on unconstitutional DEI principles." The MTA has maintained that it followed equal project rules and hasn't been found in violation after submitting information about its Disadvantaged Business Enterprise program to the federal government, Politico reported.