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New York sues over funding for subway project

(The Center Square) — New York City’s public transit agency is taking the Trump administration to court over its ongoing freeze of federal funding for a long-awaited subway extension project.

In a lawsuit filed Tuesday in U.S. District Court, the Metropolitan Transportation Authority asks a federal court judge to force the release of $60 million of frozen funding for the Second Avenue Subway extension.

The suit accuses the federal government of “illegally” freezing the funds approved by Congress and committed under former President Joe Biden’s administration.

“Whatever the administration’s true motivations may be, there is no question that DOT is in breach,” the complaint states.

New York Gov. Kathy Hochul took to social media Tuesday to tout the lawsuit, saying the $7.7 billion project is under budget and on time and that continued delays and funding could force developers to halt construction.

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“We’re suing the Trump administration for illegally withholding billions of dollars for the Second Avenue Subway extension,” Hochul, a Democrat, wrote on X. “For months, they’ve stood in the way of progress. New Yorkers can’t afford to wait.”

The U.S. Department of Transportation in 2023 authorized a $3.4 billion grant for the subway extension, covering nearly half of its estimated $7.7 billion price tag for the project, which will add three new stations along the Q line at 10th St, 11th St, and 125th St., according to the MTA.

But the Trump administration froze the funds for the project to review the MTA’s compliance with the Trump administration’s rules for contracting with minority- and women-owned businesses that banned diversity, equity and inclusion programs.

The threat of fresh litigation over federal funding comes after the Trump administration was forced to release money for the $16 billion Gateway Tunnel project under the Hudson River after a federal judge ruled that the DOT’s decision to withhold those grants was illegal.

Sen. Chuck Schumer was among the top New York Democrats who praised the latest lawsuit, vowing that the state will “fight until every dollar of promised funding is delivered.”

“The MTA’s lawsuit is a direct result of the Trump administration’s refusal to honor a legal commitment to the people of New York,” Schumer said in a statement. “These projects are not political bargaining chips; they are lifelines for New York’s economy and union workers.”

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