NEW YORK (AP) — Federal officials have decided to reinstate financial support for a major Manhattan transit expansion following legal action by New York state authorities.
In a Thursday court document, the U.S. Department of Transportation announced it had finished evaluating the Second Avenue subway extension and would restart reimbursements to state transit agencies for project expenses.
MTA Chief Executive Janno Lieber described the decision as bringing “long-awaited transit justice” to upper Manhattan communities. The subway expansion is creating new stations moving north through Manhattan’s Upper East Side, extending rail service into sections of Harlem.
“It shouldn’t have taken seven months and a lawsuit to get here,” Lieber stated.
Transportation Department officials said the settlement ensures taxpayers’ “hard-earned dollars will not fund unconstitutional DEI initiatives,” referencing diversity, equity, and inclusion policies. Federal administrators claimed such principles have driven up costs on government projects and violate constitutional requirements.
“This has always been about securing the best deal for the American taxpayer and ensuring their dollars are spent efficiently and fairly,” the department declared.
MTA representatives did not immediately address the federal agency’s assertions, though during Thursday’s Washington court proceedings, state officials maintained they were already following federal guidelines and funding should never have been suspended, according to The New York Times.
Transportation officials had blocked approximately $60 million from the Second Avenue development during their assessment. The complete project carries a $7.7 billion price tag, with federal contributions totaling roughly $3.4 billion.
The Second Avenue subway disagreement represents one of several major infrastructure initiatives in New York and New Jersey that Trump has attempted to derail while clashing with Democratic leadership in those regions.
In October, the administration also suspended billions in support for a new rail connection linking New York and New Jersey. However, a federal judge in February directed government officials to restart funding for the Hudson River tunnel initiative.
Previously, the Transportation Department canceled approval for New York’s pioneering congestion pricing program and warned of funding cuts if the state continued with the toll affecting drivers entering Manhattan’s busiest areas.
A federal judge determined last month that the agency overstepped its authority by unilaterally withdrawing approval of the $9 charge.
