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Trump administration restores funding to Manhattan subway project after NY sues

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Trump administration restores funding to Manhattan subway project after NY sues
News

News

Trump administration restores funding to Manhattan subway project after NY sues

2026-04-17 08:08 Last Updated At:08:51

NEW YORK (AP) — The Trump administration has agreed to resume funding a key Manhattan subway project after New York officials sued.

The U.S. Department of Transportation said in a federal court filing Thursday that it has completed its review of the Second Avenue subway line project, and will begin reimbursing state transit officials again for construction costs.

Janno Lieber, MTA's CEO, said the reversal means “long-awaited transit justice” will soon come to neighborhoods in upper reaches of Manhattan. The Second Avenue subway project is building new stations northward along Manhattan’s Upper East Side, bringing subway service to parts of the Harlem neighborhood.

“It shouldn’t have taken seven months and a lawsuit to get here," he said in a statement.

The federal Department of Transportation said the agreement means taxpayers' “hard-earned dollars will not fund unconstitutional DEI initiatives,” referring to diversity, equity, and inclusion principles. The administration argued that use of DEI principles has led to soaring costs on federal projects and is unconstitutional.

“This has always been about securing the best deal for the American taxpayer and ensuring their dollars are spent efficiently and fairly,” the agency said in a statement.

Lieber, addressing reporters later Thursday, called the dispute "an “unnecessary waste of the public's time and money” since the state agency was complying with the administration's new rules regarding minority and women-owned businesses in federal projects.

“The whole point was they sent us a letter saying we didn't make the standards of the new rules before they even issued the new rules,” he said. “It was just a bunch of gamesmanship.”

The USDOT had withheld roughly $60 million from the Second Avenue project as it launched its review. Overall, the project is supposed to cost $7.7 billion, with the federal government covering around $3.4 billion.

The dispute over the Second Avenue subway was among a number of major transportation projects in New York and New Jersey that Trump has sought to scuttle as he feuded with Democratic leaders in those states.

The administration in October also halted billions of dollars in funding for a massive new rail tunnel between New York and New Jersey. A federal judge in February, however, ordered federal officials to resume payments for the tunnel project under the Hudson River.

Last year, the USDOT rescinded approval for New York's first-in-the-nation congestion fee and threatened to pull funding from the state if it did not abandon the toll, which is imposed on drivers entering the busiest part of Manhattan.

But a federal judge ruled last month that the agency lacked the authority to unilaterally rescind approval of the $9 fee.

FILE - A construction worker is hoisted towards the ceiling inside the 86th Street cavern of the Second Avenue subway tunnel, May 1, 2014, in New York. (AP Photo/Bebeto Matthews, File)

FILE - A construction worker is hoisted towards the ceiling inside the 86th Street cavern of the Second Avenue subway tunnel, May 1, 2014, in New York. (AP Photo/Bebeto Matthews, File)

FILE - A construction worker cuts stone near an entrance of the unfinished Second Avenue subway, Dec. 14, 2016, in New York. (AP Photo/Seth Wenig, File)

FILE - A construction worker cuts stone near an entrance of the unfinished Second Avenue subway, Dec. 14, 2016, in New York. (AP Photo/Seth Wenig, File)

ROME (AP) — In a packed auditorium steps from the Vatican, Roberto Vannacci — the former Italian army general known to supporters as “Il Generale” — is rallying followers of his fledgling party, casting himself as an outsider while reshaping Italy’s right and challenging Premier Giorgia Meloni.

Vannacci’s fast-rising “Futuro Nazionale” party is injecting new uncertainty into the conservative bloc that has underpinned Meloni’s government, exposing tensions ahead of the 2027 general election.

The question, analysts say, is no longer whether Vannacci will influence the vote, but whether Meloni can contain, co-opt or outmaneuver a challenger carving out political space to her right.

The emergence of a rival on Meloni’s right could also test the stability of her government and threaten the more moderate, pro-European approach the premier has so far adopted in office.

Vannacci’s rise comes as far-right and nationalist parties gain ground across Europe, reshaping the political landscape and focusing on polarizing issues like migration and security.

“With us, Italy will once again be the home of Italians,” Vannacci said at his party’s founding assembly this weekend in Rome, “Everyone must feel safe in their own home.”

He proudly described his core lawmakers as the “dirty dozen,” stressing his outsider role.

Vannacci, 57, emerged politically with his 2023 self-published book “Il mondo al contrario” (The World Upside Down), which drew controversy for harsh attacks on LGBTQ+ people, migrants and minorities.

He entered politics a year later with Matteo Salvini ’s anti-migration League, winning more than 530,000 preferences in European Parliament elections. He left the League in February to launch his Futuro Nazionale, a break Salvini called a “betrayal.”

Since then, Vannacci has consolidated support. The party says it has surpassed 100,000 members and now has eight deputies, including defectors from the League and centrist Forza Italia, underscoring unease within Meloni’s coalition.

He rejects the traditional “far-right” label, calling his movement the “real right,” and has accused Meloni of failing to turn shared priorities into policies. He's for now ruling out a possible alliance.

Vannacci platform centers on hard-line positions on security and migration, including calls for the “remigration” of foreigners he considers not integrated; opposition to EU policies such as the Green Deal; and criticism of Western sanctions on Russia.

Analysts say Vannacci's rise in Italy reflects a political and cultural shift.

“He is commanding a sort of political raid for hard-right votes within the main parties of the coalition,” said Massimiliano Panarari, politics professor at University of Modena and Reggio Emilia. “Meloni’s strategy was to have no one to her right. Now she does.”

Panarari described Vannacci as “an entrepreneur of fear,” whose rhetoric pushes themes that Meloni can no longer openly embrace in government, like openly anti-gay and anti-feminist positions.

Lorenzo Pregliasco, political analyst and polling expert at YouTrend, said the development introduces “something new — an opposition from the right to the current government.”

“Now there is a force outside the majority that challenges it on popular issues like migration, security and culture wars,” he noted.

That shift carries electoral weight. Polls put Vannacci's Futuro Nazionale at around 4% to nearly 5%, a potentially decisive share with Italy’s main center-right and center-left blocs closely matched.

“They could be the difference between finishing ahead or behind,” Pregliasco said, describing Vannacci as a potential “wild card.”

For Meloni, the dilemma is strategic.

“In terms of political debate, he introduces instability on the right,” Pregliasco said. “She and her allies must decide whether to absorb him into the coalition — but that would create problems.”

Addressing parliament earlier this week, Meloni accused Vannacci-aligned lawmakers of undermining the government and favoring the left, while her Brothers of Italy party and centrist allies have ruled out electoral agreements.

For now, Meloni has avoided direct confrontation, a strategy seen as both calculation and a bet that Vannacci’s momentum may fade.

“The issue is what to do with this loose cannon of Vannacci, which could drag the right back toward the far right,” Panarari said.

“I’m not sure it would benefit Meloni to shift further right before general elections. Her approach will likely be marked by ambiguity and ambivalence, as long as possible."

EU Parliament member and former Italian army general Roberto Vannacci speaks during a press conference as he concludes the two-day founding congress of his far-right party, Futuro Nazionale (National Future) in Rome, Sunday, June 14, 2026. (AP Photo/Gregorio Borgia)

EU Parliament member and former Italian army general Roberto Vannacci speaks during a press conference as he concludes the two-day founding congress of his far-right party, Futuro Nazionale (National Future) in Rome, Sunday, June 14, 2026. (AP Photo/Gregorio Borgia)

EU Parliament member and former Italian army general Roberto Vannacci addresses the audience as he concludes the two-day founding congress of his far-right party, Futuro Nazionale (National Future) in Rome, Sunday, June 14, 2026. (AP Photo/Gregorio Borgia)

EU Parliament member and former Italian army general Roberto Vannacci addresses the audience as he concludes the two-day founding congress of his far-right party, Futuro Nazionale (National Future) in Rome, Sunday, June 14, 2026. (AP Photo/Gregorio Borgia)

EU Parliament member and former Italian army general Roberto Vannacci pauses during a press conference as he concludes the two-day founding congress of his far-right party, Futuro Nazionale (National Future) in Rome, Sunday, June 14, 2026. (AP Photo/Gregorio Borgia)

EU Parliament member and former Italian army general Roberto Vannacci pauses during a press conference as he concludes the two-day founding congress of his far-right party, Futuro Nazionale (National Future) in Rome, Sunday, June 14, 2026. (AP Photo/Gregorio Borgia)

EU Parliament member and former Italian army general Roberto Vannacci speaks during a press conference as he concludes the two-day founding congress of his far-right party, Futuro Nazionale (National Future) in Rome, Sunday, June 14, 2026. (AP Photo/Gregorio Borgia)

EU Parliament member and former Italian army general Roberto Vannacci speaks during a press conference as he concludes the two-day founding congress of his far-right party, Futuro Nazionale (National Future) in Rome, Sunday, June 14, 2026. (AP Photo/Gregorio Borgia)

EU Parliament member and former Italian army general Roberto Vannacci addresses the audience as he concludes the two-day founding congress of his far-right party, Futuro Nazionale (National Future) in Rome, Sunday, June 14, 2026. (AP Photo/Gregorio Borgia)

EU Parliament member and former Italian army general Roberto Vannacci addresses the audience as he concludes the two-day founding congress of his far-right party, Futuro Nazionale (National Future) in Rome, Sunday, June 14, 2026. (AP Photo/Gregorio Borgia)

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