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New York AG James sues Homeland Security for nearly $34 million over transit funding freeze

Reuters
Last updated: October 1, 2025 10:03 am
Reuters
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(Reuters) -New York Attorney General Letitia James on Tuesday filed a lawsuit and an emergency motion seeking a temporary restraining order against U.S. Secretary of Homeland Security Kristi Noem and the department, accusing them of unlawfully withholding nearly $34 million in funding requested by the state’s Metropolitan Transportation Authority (MTA).

The MTA is the state agency that operates New York City’s subway and buses, as well as commuter rail lines that serve nearby suburbs.

In a late Tuesday lawsuit filed in the U.S. District Court for the Southern District of New York James is seeking an emergency order by midnight to safeguard the MTA’s funding.

The Department of Homeland Security did not immediately respond to a Reuters request for comment.

“DHS today cut New York’s award from nearly $34 million to zero – an unlawful decision,” her press office said in a statement, adding that James is not seeking disbursement tonight, only preservation of the funds while the courts resolve the case.

The move, James said, jeopardizes the safety of millions of New Yorkers.

“I am asking the court to act before midnight to stop these funds from vanishing and to ensure that New Yorkers are not put at risk by this administration’s political games,” James said.

Last month, the U.S. Transportation Department said it may withhold up to 25% of federal transit funding for the MTA if the agency does not improve safety for subway track maintenance workers.

(Reporting by Gnaneshwar Rajan and Mrinmay Dey in Bengaluru; Editing by Kim Coghill)

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TAGGED:Department of Homeland Securityemergency motionKristi NoemLetitia JamesMetropolitan Transportation AuthorityNew York Attorney GeneralNew York CitySecretary of Homeland Securitytemporary restraining orderthe Southern District of New York JamesU.S. District Court
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