NY State Funding Will Allow Second Avenue Subway Project to Continue During Congestion Pricing Pause

ALBANY—New York Gov. Kathy Hochul announced on Tuesday (July 30) that the state will provide $54 million to support utility work that will allow the Second Avenue Subway project to proceed while state lawmakers address the massive capital funding gap caused by the recent decision by the governor to put the congestion pricing tolling program on pause.

Multiple press reports indicate that the MTA previewed its $51.5-billion five-year capital program yesterday and expects the governor and State Legislature to approve monies that will close the funding gap caused by the pause in congestion pricing that was to generate $15 billion to the transportation agency.

The capital funding provided to the Metropolitan Transportation Authority will be earmarked towards the utility relocation contract (“Contract 1”) for Phase 2 of the expansion project, which will deliver subway service to residents of East Harlem. With this funding support the MTA can immediately proceed with the work to relocate utility lines along Second Avenue and nearby streets, putting the project in position to advance as scheduled. State officials noted that the action will not impact MTA Capital Program State of Good Repair projects that are prioritized or currently underway.

“I have been committed to the Second Avenue Subway since the day I took office, and we will deliver this project for the people of East Harlem and the millions of riders who will use it every day,” Gov. Hochul said. “When I announced the pause on implementing congestion pricing, I directed my team to think creatively about how to keep these generational investments moving forward. Now, we are committing the funds needed to continue the utility relocation contract, the first step to building this transformational project to meet the needs of everyday New Yorkers.”

MTA Chair and CEO Janno Lieber said, “We are grateful the governor was able to identify new funds to advance the utility relocation project along Second Avenue without impacting funding available for State of Good Repair investments. Advancing that utility work now—while congestion pricing is on pause—puts MTA in a position to keep the overall Second Avenue Subway Phase 2 project on schedule while Albany resolves how to fund the $15 billion outstanding for the MTA’s 2020-24 Capital Program.”

The second phase of the project will extend the Q train service from 96th Street north on Second Avenue to 125th Street and then west on 125th Street to Park Avenue, approximately 1.5 miles in total. There will be three new stations at 106th Street, 116th Street and 125th Street, and a direct passenger connection with the existing 125th Street subway station on the Lexington Avenue subway line. Phase 2 will also feature an entrance at Park Avenue to allow convenient transfers to the Metro-North Railroad 125th Street Station.

New York State Comptroller Thomas DiNapoli estimates the MTA will have a $25-billion shortfall in its five-year capital spending plan as long as the congestion pricing funding program’s funding is not replaced.