New York Attorney General Letitia James has filed a lawsuit against the U.S. Department of Homeland Security (DHS), seeking the release of approximately $34 million in transportation funds that were frozen by federal authorities.
Basis of the Lawsuit
The Attorney General’s office argues that the federal government’s decision to withhold the funds is unlawful and poses a direct threat to critical transit services in the state. The frozen amount had been allocated to support New York’s Metropolitan Transportation Authority (MTA) and other infrastructure programs, which rely heavily on federal contributions.
James emphasized that the suspension of these funds not only undermines essential public services but also jeopardizes the state’s ability to maintain reliable and affordable transportation for millions of commuters.
Impact on New York’s Transit System
The $34 million in question was earmarked for security and modernization efforts within the MTA network, including projects to improve passenger safety and strengthen operational resilience. With the funds locked, officials warn that planned upgrades could face delays, potentially impacting both commuters and transit workers.
Political and Legal Context
This lawsuit follows recent tensions between New York officials and federal agencies over transportation and infrastructure funding. The move is also linked to broader disputes surrounding federal oversight and the use of budgetary conditions tied to policy priorities.
Letitia James stated: “These funds belong to New Yorkers, and withholding them puts our residents, workers, and transit systems at risk. We will fight to ensure every dollar is delivered as promised.”
Next Steps
The case is expected to proceed in federal court, where New York will argue for the immediate release of the funds. Meanwhile, state officials are pressing Washington for a resolution, stressing that the stability of the city’s transit system should not be entangled in political disputes.



