NATIONAL NEWS

Trump administration restores funding to Manhattan subway project after NY sues

Apr 16, 2026, 4:07 PM

FILE - A construction worker cuts stone near an entrance of the unfinished Second Avenue subway, De...

FILE - A construction worker cuts stone near an entrance of the unfinished Second Avenue subway, Dec. 14, 2016, in New York. (AP Photo/Seth Wenig, File)
Credit: ASSOCIATED PRESS

(AP Photo/Seth Wenig, File)

NEW YORK (AP) — The Trump administration has agreed to resume funding a key Manhattan subway project after New York officials sued.

The U.S. Department of Transportation said in a federal court filing Thursday that it has completed its review of the Second Avenue subway line project, and will begin reimbursing state transit officials again for construction costs.

Janno Lieber, MTA’s CEO, said the reversal means “long-awaited transit justice” will soon come to neighborhoods in upper reaches of Manhattan. The Second Avenue subway project is building new stations northward along Manhattan’s Upper East Side, bringing subway service to parts of the Harlem neighborhood.

“It shouldn’t have taken seven months and a lawsuit to get here,” he said in a statement.

The federal Department of Transportation said the agreement means taxpayers’ “hard-earned dollars will not fund unconstitutional DEI initiatives,” referring to diversity, equity, and inclusion principles. The administration argued that use of DEI principles has led to soaring costs on federal projects and is unconstitutional.

“This has always been about securing the best deal for the American taxpayer and ensuring their dollars are spent efficiently and fairly,” the agency said in a statement.

Spokespersons for the MTA didn’t immediately respond to USDOT’s claims, but during a federal court hearing in Washington on Thursday, the state agency argued that it was already in compliance with federal policies and that the funding should have never been withheld, The New York Times reported.

The USDOT had withheld roughly $60 million from the Second Avenue project as it launched its review. Overall, the project is supposed to cost $7.7 billion, with the federal government covering around $3.4 billion.

The dispute over the Second Avenue subway was among a number of major transportation projects in New York and New Jersey that Trump has sought to scuttle as he feuded with Democratic leaders in those states.

The administration in October also halted billions of dollars in funding for a massive new rail tunnel between New York and New Jersey. A federal judge in February, however, ordered federal officials to resume payments for the tunnel project under the Hudson River.

Last year, the USDOT rescinded approval for New York’s first-in-the-nation congestion fee and threatened to pull funding from the state if it did not abandon the toll, which is imposed on drivers entering the busiest part of Manhattan.

But a federal judge ruled last month that the agency lacked the authority to unilaterally rescind approval of the $9 fee.

National News

People stand at the doors of the Maryland State House on Tuesday, Aug. 4, 2026, in Annapolis, Md. (...

Associated Press

Maryland court rules Democratic-backed redistricting amendment cannot go on November ballot

A Maryland court has ruled against a proposed constitutional amendment that could have paved the way for Democrats to redraw the state’s congressional districts ahead of the 2028 elections. The ruling Wednesday by a judge in the state’s capital city marks another setback in Democrats’ national attempts to counter a Republican redistricting movement pushed by […]

31 minutes ago

A Gideon Bible sits on a table in Phoenix, Sunday Aug. 23, 2026. (AP Photo/Dario Lopez-Mills)Credit...

Associated Press

For over 100 years, travelers have checked into US motel rooms and found the Gideon Bible

SALISBURY, Md. (AP) — “Rocky Raccoon checked into his room, only to find Gideon’s Bible.” Paul McCartney explained those famous lines in the song by The Beatles, saying these Bibles “were in every hotel in America.” He’d never seen something like that in England. For more than a century, countless have found it in the […]

54 minutes ago

FILE - A sign for the U.S. Food and Drug Administration is displayed outside their offices in Silve...

Associated Press

FDA approves landmark pancreatic cancer drug that’s shown to improve survival

WASHINGTON (AP) — The Food and Drug Administration on Wednesday approved a groundbreaking new drug for the most common form of pancreatic cancer, offering U.S. patients a more effective treatment against one of the deadliest types of cancer. FDA officials gave expedited approval to the first-of-a-kind pill, called daraxonrasib, that blocks a mutated protein that […]

1 hour ago

meta social media addiction...

Associated Press

Meta reaches $17 billion settlement with states in landmark trial over teen social media addiction

Meta has agreed to pay $17 billion and add child-safety measures to its Facebook and Instagram platforms to end a landmark trial over teen social media addiction

1 hour ago

Delivery vans bearing the logo sit during a protest staged as part of a countrywide National Day of...

Associated Press

Democratic states file new lawsuit seeking to block Trump’s order limiting mail voting in midterms

Democratic-controlled states on Wednesday filed another lawsuit challenging President Donald Trump’s executive order seeking to limit mail voting in this year’s midterm elections. The action, filed by about two dozen states against the U.S. Postal Service, marked a new phase in the high-stakes litigation just two days after the Supreme Court ruled against them in […]

2 hours ago

Lyndsay Clancy and her attorney Kevin Reddington listen to the testimony of Dr. Gregory Saathoff du...

Associated Press

FBI psychiatrist returns as Lindsay Clancy murder trial nears closing arguments

The prosecution resumed questioning its final witness Wednesday in the murder trial against Lindsay Clancy, with an FBI psychiatrist testifying that the choices she made while killing her three children indicated she remained in control of her actions. Dr. Gregory Saathoff, a forensic psychiatrist at the University of Virginia and a senior psychiatrist for the […]

3 hours ago

Trump administration restores funding to Manhattan subway project after NY sues