New York City transit authority sues Trump administration over funding pause News
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New York City transit authority sues Trump administration over funding pause

The New York City Metropolitan Transportation Authority (MTA) sued the Trump administration Monday for pausing payments on the Second Avenue Subway Project.

The complaint alleges that the US Department of Transportation (DOT) failed to reimburse the MTA over $50 million, as required by contract. MTA and DOT entered into a Full Funding Grant Agreement where DOT promised to fund over $7 billion for the subway project through reimbursements. MTA alleged that the DOT stopped making reimbursements in September 2025, violating its contract.

The Second Avenue Subway Project is an expansion of the Q line into East Harlem. The MTA estimates it will improve the commute time of 100,000 people. This is especially important given the neighborhood’s high reliance on public transit, according to MTA.

The MTA pointed to varied responses from the government as to why payments stopped. In October 2025, DOT informed the MTA that it would be pausing payments to review the program for constitutional compliance. However, the MTA cited statements by Trump officials indicating that the administration was using the payments as a negotiating tool during the government shutdown. The DOT maintained that the funding pause is part of its oversight responsibilities, saying “USDOT is committed to ensuring hardworking taxpayer dollars are being spent responsibly.” The MTA argues that either way, the pause violated federal regulations requiring notice before pausing payments and an opportunity to fix any breach MTA may have committed.

The funding pause is the second this year over which New York City has sued the Trump administration. In February, the MTA sued the DOT for halting funding for the Hudson Tunnel Project, which would connect New York and New Jersey under the Hudson River. The DOT stated that it was undertaking a review to ensure that the project complied with policies regarding race and sex.

The MTA is requesting payment of the paused funds as well as damages for failure to make timely payments and improper suspension of funding.

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