Overview

• The MTA board approved a $1.972 billion design-build contract to Connect Plus Partners, a Halmar International–FCC Construction joint venture, calling it the largest tunneling contract in agency history.
• The Phase 2 extension will add ADA-accessible stations at 106th, 116th and 125th streets, with transfers to the Lexington Avenue lines and a new Park Avenue entrance for Metro-North connections.
• Early street work begins later this year, heavy civil construction starts in early 2026, tunnel boring is slated for 2027 after new German-built TBMs arrive, and opening is targeted for 2032.
• The roughly $7–$7.7 billion phase will be financed through congestion-pricing revenue, federal funds and the MTA capital plan, with an estimated $1.3 billion in savings from design changes, smaller tunnel crews and reuse of a 1970s tunnel segment.
• Property acquisitions and eminent domain are in progress in East Harlem, with the MTA citing a 20% local-hire goal and advancing a separate proposal to build 684 apartments near the future 125th Street terminus.