Report: Federal government to release MTA subway funding

The Trump administration today is set to release federal reimbursements owed to the Metropolitan Transportation Authority for the MTA New York City Transit Second Avenue subway project, according to a Politico report.

The MTA in March sued the administration, accusing it of illegally withholding $58.6 million in federal grant and loan reimbursements since October 2025.

On April 16, shortly before a federal judge was set to hear arguments in the case, the U.S. Department of Transportation stated that a deal was reached to release the funding, according to the news report. In a letter, USDOT stated it had found "troubling information that MTA contractors considered race and sex as part of its bidding and contract process, but that the transit agency had agreed to make changes."

"The MTA can now confidently forge ahead with Second Avenue Subway Phase 2," MTA Chair and CEO Janno Lieber said in a statement issued last week. "The billion-dollar contract approved at our March board meeting is being awarded and contractors are mobilizing right away."

This was the second lawsuit New York government offices and project partners have brought against the administration regarding paused federal funding reimbursements. New York and New Jersey earlier this year successfully sued the administration for withholding funding for the Hudson Tunnel project.