Overview

• USDOT and OMB paused reimbursements for the Second Avenue Subway Phase 2 and the Hudson River Gateway tunnel under an interim rule rejecting race- and sex-based contracting requirements tied to the DBE program.
• The department said reimbursements cannot be processed until the review is complete, including a cited $300 million payment for the Second Avenue Subway.
• DOT civil-rights staff are furloughed due to the government shutdown, delaying the administrative review and extending the funding pause.
• New York officials condemned the action as political retaliation, with Gov. Kathy Hochul and Rep. Adriano Espaillat vowing to fight it as the state attorney general reviews legal options.
• The MTA recently advanced Phase 2 contracting for East Harlem stations at 106th, 116th, and 125th streets and projects significant job and ridership gains, while assessing how the pause affects timelines.