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MTA Sues Trump Administration Over $59M Subway Funds

Published 17 March 2026

The Metropolitan Transportation Authority, the agency overseeing New York City's subway system, filed a lawsuit Tuesday against the Trump administration, alleging breach of contract for withholding nearly $59 million in federal funding earmarked for extending the Second Avenue subway line into East Harlem.

The suit, lodged in the U.S. Court of Federal Claims in Washington, D.C., claims the U.S. Department of Transportation has failed to disburse more than $58.6 million owed under a prior agreement since announcing a funding suspension last October. The project, estimated to cost between $7 billion and $7.7 billion overall, relies on about $3.4 billion from the federal government to add three new stations along the Q line at 106th Street, 116th Street, and 125th Street. These stations would extend the line roughly two miles northward from its current terminus at 96th Street on the Upper East Side, connecting to the 4, 5, and 6 lines as well as Metro-North Railroad service at 125th Street. Construction began two years ago, with initial work on utility relocations and property acquisitions already underway.

According to the lawsuit, the funding hold has forced the MTA to redirect...

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