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MTA Moves to Approve Key Second Avenue Subway Contract as Federal Funds Stay Frozen

A federal funding freeze tied to a contracting compliance review now threatens the project's schedule.

Overview

  • The MTA board, which plans a Wednesday vote to clear a $1.1 billion package to excavate the 106th Street station, says it will not award the work until federal reimbursements resume.
  • USDOT halted payments in October to review the MTA’s compliance with Disadvantaged Business Enterprise rules, which set participation targets for minority- and women-owned firms.
  • The MTA sued in the U.S. Court of Federal Claims last week seeking about $58.6–$60 million in withheld reimbursements and asking for expedited relief to keep Phase 2 on track.
  • Contract 3 would open a nearly five-block, 60-foot-deep trench along Second Avenue to build the 106th Street station box and link to existing tunnels, with a Skanska–Walsh–Traylor joint venture lined up for the job.
  • Shop owners near 105th–110th Streets say pre-construction fencing is cutting walk-in traffic, underscoring short-term strain as a project expected to extend Q service to 125th Street advances.