Trump Administration Will Release 2nd Ave. Subway Funding, in Reversal
Key Points:
- The federal government has agreed to release nearly $60 million in withheld funding for New York City’s Second Avenue subway extension, resolving a months-long dispute threatening the $7 billion project.
- The Metropolitan Transportation Authority (MTA) sued the government for breach of contract after delayed reimbursements, prompting the government to restart payments.
- The U.S. Department of Transportation had paused funding due to a review of the MTA’s race- and sex-based criteria for working with disadvantaged businesses but is now satisfied with the MTA’s adjustments.
- The MTA contended in court that it was already compliant with the department’s policy changes and that there was no justification for withholding the funds.