The MTA has sued the Trump administration in the U.S. Court of Federal Claims after nearly $60 million was withheld from the $7.7 billion Second Avenue Subway project. The suit alleges the payment suspension was used to pressure Senator Chuck Schumer and warns the pause threatens timelines for more than 100,000 daily riders. USDOT says it is reviewing legal options and emphasized fiscal responsibility, while the White House declined to comment. The filing also references a separate $1.2 billion freeze for a Chicago subway extension and follows a court order keeping funds flowing to the $16 billion Hudson Tunnel Project.
MTA Sues Trump Administration Over Nearly $60 Million Frozen for Second Avenue Subway
A construction crew works on the Manhattan Tunnel Project, which is part of the Hudson Tunnel Project, in New York City, U.S., October 1, 2025. REUTERS/Kylie Cooper
The Metropolitan Transportation Authority (MTA) filed a breach of contract lawsuit in the U.S. Court of Federal Claims after the Trump administration withheld nearly $60 million in federal funds earmarked for the Second Avenue Subway, the agency said on Tuesday.
The lawsuit challenges the U.S. Department of Transportation's (USDOT) decision to suspend payments at the start of last fall's government shutdown — a move that affected multiple infrastructure projects and prompted several legal challenges.
Project Details. The Second Avenue Subway is a $7.7 billion program; the Biden administration previously awarded $3.4 billion to the project. The current phase is designed to shorten commutes for more than 100,000 daily riders by extending the Q subway line 1.76 miles into East Harlem and Harlem and adding three new stations. Plans for the Second Avenue line date back to the 1920s, though construction has progressed only in recent decades.
Allegations and Responses. The MTA's complaint alleges that the payments were suspended to exert political pressure on Senate Minority Leader Chuck Schumer, who represents New York. "Once again, New York has been forced to sue the Trump Administration to stop them from erratically shutting off billions of dollars in previously committed infrastructure funding," said New York Governor Kathy Hochul, warning that the "unlawful funding pause" endangers the project.
USDOT said it is "committed to ensuring hardworking taxpayer dollars are being spent responsibly. We are considering all legal avenues." The White House declined to comment.
The complaint also notes that USDOT suspended about $1.2 billion for a Chicago Transit Authority subway extension during last fall's shutdown. Last week, a federal appeals court ordered the Trump administration to continue payments on the $16 billion Hudson Tunnel Project after USDOT halted funding to that project following a separate suit by New York and New Jersey.
Hudson Tunnel Context. The Hudson Tunnel Project seeks to build a new commuter rail tunnel between Manhattan and New Jersey and to repair an aging century-old tunnel that carries more than 200,000 travelers and 425 trains daily. The existing tunnel was heavily damaged by Hurricane Sandy in 2012 and now requires frequent emergency repairs that disrupt service on the nation’s busiest passenger rail corridor.
The MTA says the funding pause risks delays and cost increases on the Second Avenue Subway and other critical regional infrastructure projects as legal disputes over the suspended payments continue.
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