Earlier in the year, President Trump’s budget director, Ross Vought, announced a freeze on funding not only for the Second Avenue Subway project but also for the significant Gateway project, which involves constructing a new tunnel to link New York and New Jersey.

Following legal action by the attorneys general of New York and New Jersey, a federal judge mandated the White House to reinstate $16 billion in funds for the Gateway Tunnel. This legal precedent has emboldened Governor Hochul to challenge the administration over the subway project.

“We warned Donald Trump that if he didn’t restore the funding for this project, we’d take him to court. Today, we are following through on that promise,” Hochul declared on Tuesday. She further asserted, “Just like with Gateway, Donald Trump has two choices: restore the money now or await a judge’s directive to do so.”

In an October 2025 social media post, Vought said that the funds were being frozen for a federal review of whether the MTA used “principles” of diversity, equity and inclusion in doling out contracts.

The MTA says it complied with the review, but the feds have nonetheless continued to freeze the funds.

A spokesperson for the US Transportation Department did not immediately respond Tuesday to a request for comment.