Funds Released for Second Avenue Subway Phase 2

The Trump administration will release federal funding for New York’s Second Avenue Subway Phase 2 project, The Hill reported on April 17. Trains.com reported that $58 million in funds will be released. The funds had been withheld since Oct. 1 pending a DOT review of whether MTA’s hiring practices were in compliance with the department’s new rules related to disadvantaged businesses.

“It shouldn’t have taken seven months and a lawsuit to get here, but with the federal government’s concession today on the courthouse steps, the MTA can now confidently forge ahead with Second Avenue Subway Phase 2,” MTA Chair and CEO Janno Lieber said in a press release. “The billion-dollar contract approved at our March Board meeting is being awarded and contractors are mobilizing right away.

“Today’s MTA is determined to expand our network and give riders more and better service. Long-awaited transit justice for East Harlem is just the beginning.”

Second Avenue Subway Phase 2 will extend the Q line about 1.76 miles north from 96th Street to 125th Street in East Harlem. The tunnel contract, valued at $1.972 billion, was awarded to Connect Plus Partners, a joint venture between Halmar International and FCC Construction, in August 2025. The total project cost is estimated at $7.7 billion with a projected completion date of 2032.

RELATED: Second Avenue Subway Phase 1 Opens in New York