President Donald Trump’s administration has agreed to release $60 million in federal funds for the Second Avenue Subway project in New York City, resolving a lawsuit filed by the Metropolitan Transportation Authority (MTA) and New York Governor Kathy Hochul. The decision comes after months of withheld funding that had stalled the expansion of the Q line into East Harlem.
The funds were part of a larger $3.4 billion federal grant allocated by Congress to extend the Second Avenue Subway westward into Harlem. MTA officials stated they had been forced to divert money from other critical infrastructure projects to keep the subway expansion moving forward amid the funding freeze.
Governor Hochul and MTA Chair Janno Lieber filed the lawsuit in federal court, arguing that the Trump administration had improperly withheld congressionally appropriated funds. Hochul criticized the administration’s actions, saying they “trample on everything we’ve held dear for 250 years, including the right of Congress to decide how the money’s spent.” Lieber expressed hope that the administration would learn from a recent court decision that blocked an attempt to halt funding for the Gateway Program.
The legal challenge centered on whether the executive branch could lawfully delay or reject funds that had already been approved by Congress for specific infrastructure projects. Oral arguments in the case were scheduled for 1:30 p.m. In Washington, D.C., before the administration announced its reversal.
The Second Avenue Subway expansion is designed to serve more than 100,000 daily riders by reducing commute times and improving access to transit in underserved areas of Manhattan. The project has faced repeated delays over the years due to funding challenges and construction complexities.
With the funding now expected to be released, MTA officials say they can resume planned work on new stations and track extensions along the Q line route. The agency has not yet provided a revised timeline for completion of the Harlem extension.
The resolution marks another instance in which court intervention or the threat of litigation has prompted the Trump administration to release blocked funds for New York infrastructure projects. Earlier in 2026, the administration released money for the Hudson River tunnels after a similar legal challenge by state officials.
Transit advocates and local officials have welcomed the decision as a win for federalism and the proper implementation of congressional spending authority. They emphasize that infrastructure investments like the Second Avenue Subway are vital for economic equity and environmental sustainability in the nation’s largest city.
As of now, no official statement has been issued by the White House or the Department of Transportation detailing the exact timing or mechanics of the fund release. The MTA says it will provide updates as the money becomes available for disbursement to contractors and engineers working on the project.
Stakeholders will be watching closely to ensure the funds are distributed without further delay and that construction can proceed according to updated schedules. Any future updates on the project’s status are expected to come from the MTA’s capital program office or through official city and state transportation channels.
For ongoing developments regarding federal transit funding and New York City infrastructure projects, readers are encouraged to follow official announcements from the Metropolitan Transportation Authority and the Office of the Governor of New York.