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Trump said he'd end 'Democrat projects.' NY sues for subway expansion

Trump said he'd end 'Democrat projects.' NY sues for subway expansion

USA TODAY
Tuesday, March 17, 2026 10:22:58 PM UTC

The Second Avenue Subway expansion has been planned for a century. Federal officials abruptly withheld funds on what Trump called \

NEW YORK − After President Donald Trump said he froze "Democrat projects," New York officials are suing the administration over abruptly withholding federal funds on a century-old subway expansion project.

In a lawsuit filed March 17, the Metropolitan Transportation Authority said the U.S. Department of Transportation withheld $58 million contracted under federal law to help complete the $7 billion Second Avenue Subway extension in Manhattan. Federal dollars pay nearly half of the 1.76-mile extension's total cost.

“Everybody knows the Trump administration has been withholding money for New York infrastructure projects,” Janno Lieber, MTA chair and CEO, said at a New York City Council hearing. “We intend to get every cent of what has been promised.”

The MTA’s 46-page lawsuit filed in the U.S. Court of Federal Claims, in Washington, DC, said the federal government hadn't fulfilled its grant agreement on the project’s second phase, which extends the Q train into Manhattan's East Harlem neighborhood.

The federal government in October paused funding on the Second Avenue Subway and the Gateway tunnel projects over what it said were issues related to diversity, equity and inclusion programs, but the president expressed it was over a political fight with congressional Democrats. The March 17 lawsuit comes after New York and New Jersey officials successfully sued the Department of Transportation to recoup over $200 million in funding withheld for the Gateway tunnel, a rail expansion project underneath the Hudson River between New Jersey and Manhattan. 

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