DOT Releases $60 Million for NYC Second Avenue Subway

The U.S. Department of Transportation announced Thursday that it will release approximately $60 million in withheld federal funding for the Second Avenue subway extension in New York City, resolving a dispute with the Metropolitan Transportation Authority just before a scheduled federal court hearing.

The funding, part of a $3.4 billion federal commitment to the $7.7 billion project, had been frozen since October amid concerns over the MTA's contracting practices. The DOT's review identified issues with the agency's consideration of race and sex in bidding and contract awards, including requirements for portions of work to go to minority- and women-owned businesses. These practices, which the administration viewed as tied to diversity, equity, and inclusion initiatives, were challenged under new federal rules issued during last fall's government shutdown. The MTA agreed to implement corrective actions to align with those rules, prompting the DOT to complete its review and resume processing reimbursement requests.

MTA Chair and CEO Janno Lieber welcomed the decision in a statement, noting it allows the agency to advance Phase 2 of the project. "It shouldn't have taken seven...