Workers are seen at the construction site of the Second Avenue subway station in New York City on October 2, 2025.
Michael M. Santiago | Getty Images
The Metropolitan Transportation Authority on Tuesday sued the Trump administration for withholding nearly $60 million from a major New York City subway project.
A breach of contract lawsuit filed in the U.S. Court of Federal Claims over funding for the $7.7 billion Second Avenue subway project is the latest in a series of legal challenges to the U.S. Department of Transportation’s decision to halt funding for some projects at the start of last fall’s government shutdown.
USDOT and the White House did not respond to requests for comment.
The Manhattan subway project aims to reduce commute times for more than 100,000 passengers each day, and its current portion extends the subway Q line 1.76 miles to East Harlem and Harlem and adds three new subway stations. The Second Avenue Line has been considered since the 1920s.
“New York State is once again forced to sue the Trump Administration to stop the irregular suspension of billions of dollars in previously promised infrastructure funding,” said New York Governor Kathy Hochul. “Donald Trump’s illegal defunding puts this entire project at risk.”
“President Trump has made it clear that he withheld the payments to put political pressure on Senate Minority Leader Chuck Schumer, who represents New York,” the complaint says.
The complaint also notes that during last fall’s shutdown, USDOT withheld $1.2 billion in funding earmarked for the Chicago Transit Authority’s subway extension.
Last week, a federal appeals court ruled that the Trump administration must continue paying for the $16 billion New York Hudson Tunnel after the USDOT also suspended payments for the project following lawsuits by New York and New Jersey.
The Hudson Tunnel Project aims to build a new commuter rail tunnel between Manhattan and New Jersey and rehabilitate the 100-year-old tunnel, which is used by more than 200,000 travelers and 425 trains each day. The existing tunnel was heavily damaged by Hurricane Sandy in 2012 and requires frequent emergency repairs, disrupting service on the nation’s most heavily used passenger rail line.
