New York Transit Agency Sues Trump Administration Over Frozen Subway Funds

Lawsuit alleges political pressure behind suspension of $60 million for Second Avenue Subway project

Mar. 17, 2026 at 7:08pm

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The Metropolitan Transportation Authority (MTA) has filed a breach of contract lawsuit against the Trump administration for withholding nearly $60 million in funding for the $7.7 billion Second Avenue Subway project in New York City. The lawsuit alleges the funding suspension was done to put political pressure on Senate Minority Leader Chuck Schumer, who represents New York.

Why it matters

The Second Avenue Subway project is designed to shorten commutes for over 100,000 daily riders in Manhattan. The funding suspension has put the entire project at risk, according to New York Governor Kathy Hochul. This is the latest legal challenge to the Trump administration's decision to suspend infrastructure funding for certain projects during a government shutdown last fall.

The details

The lawsuit was filed in the U.S. Court of Federal Claims. In addition to the $60 million for the Second Avenue Subway, the Trump administration also suspended $1.2 billion in funding for the Chicago Transit Authority subway extension. A federal appeals court has already ruled the administration must continue making payments on the $16 billion New York Hudson Tunnel project, which aims to build a new commuter rail tunnel connecting Manhattan and New Jersey.

  • The lawsuit was filed on March 17, 2026.
  • The Trump administration suspended the subway funding during a government shutdown last fall.

The players

Metropolitan Transportation Authority (MTA)

The public benefit corporation that operates public transportation in the New York City area, including the subway system.

Donald Trump

The former president of the United States whose administration suspended the subway funding.

Kathy Hochul

The current governor of New York who criticized the Trump administration's actions.

Chuck Schumer

The U.S. Senate Minority Leader who represents New York and whom the lawsuit alleges the funding suspension was meant to pressure.

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What they’re saying

“Once again, New York has been forced to sue the Trump Administration to stop them from erratically shutting off billions of dollars in previously committed infrastructure funding.”

— Kathy Hochul, Governor of New York (ksgf.com)

“Donald Trump's unlawful funding pause has put this entire project at risk.”

— Kathy Hochul, Governor of New York (ksgf.com)

What’s next

The lawsuit will be heard in the U.S. Court of Federal Claims, where the MTA is seeking to have the funding restored for the Second Avenue Subway project.

The takeaway

This case highlights the ongoing tensions between the state of New York and the former Trump administration over infrastructure funding, with the state forced to take legal action to prevent the suspension of critical transit projects that impact thousands of commuters daily.