"If we don't have the resumption of reimbursements ... We're going to have to actually follow our friends in the Gateway program and pursue a solution through the federal court, through the court process. MTA Chair Janno Lieber indicated the agency would pursue litigation if federal funding was not restored by the deadline."
"DOT's refusal to comply with its payment obligations has jeopardized the project and placed the MTA in an impossible position, requiring it to plug the gap by diverting critical transportation infrastructure funding from other priorities. The MTA's attorney stated the funding freeze forced reallocation of resources away from other essential transportation needs."
The U.S. Department of Transportation halted all payments for the Second Avenue subway extension into East Harlem since October, citing a need to review contract standards. The MTA is owed at least $58 million in suspended reimbursements for the project, which received a $3.4 billion federal grant in 2023 covering nearly half of its $7.7 billion estimated cost. MTA officials report being blocked from accessing the online portal needed to file reimbursement claims. The MTA set a March 6 deadline for federal payment resumption, threatening to pursue legal action similar to the successful Gateway tunnel project lawsuit. The funding freeze has forced the MTA to divert critical transportation infrastructure funding from other priorities.
#federal-funding-freeze #second-avenue-subway #mta-litigation #infrastructure-funding #trump-administration
Read at Gothamist
Unable to calculate read time
Collection
[
|
...
]