New York Attorney General Letitia James filed an emergency lawsuit late Tuesday against U.S. Secretary of Homeland Security Kristi Noem and the Department of Homeland Security (DHS), accusing the federal agency of unlawfully withholding nearly $34 million in critical funding intended for New York’s Metropolitan Transportation Authority (MTA).
In a motion filed in the U.S. District Court for the Southern District of New York, James is seeking a temporary restraining order (TRO) to prevent DHS from eliminating the funds, arguing that the sudden cut puts the safety of millions of New Yorkers at risk and represents an abuse of federal power.
“DHS today cut New York’s award from nearly $34 million to zero – an unlawful decision,” James’ office said in a statement Tuesday evening. “We are not asking the court to disburse the money tonight — only to preserve it while the legal process plays out.”
A Midnight Deadline
The urgency of the lawsuit is tied to a midnight deadline, after which the funding could legally be reallocated or vanish from New York’s reach entirely. James called on the court to act swiftly to prevent irreparable harm to public safety and the state’s transit system.
“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 in a statement.
What’s at Stake
The MTA is the nation’s largest public transit system, operating New York City’s subway and buses, as well as regional commuter rail lines like the Long Island Rail Road (LIRR) and Metro-North. The funding in question was part of a federal grant program tied to transportation and security needs.
James’ lawsuit does not specify exactly why the funds were cut, but the move follows recent tensions between federal agencies and the MTA over safety concerns. In September, the U.S. Department of Transportation warned it might withhold up to 25% of transit funding if the MTA failed to improve protections for subway track maintenance workers, following a series of high-profile injuries and near-misses.
As of Tuesday night, the Department of Homeland Security had not responded publicly to the lawsuit or to media inquiries.
The lawsuit marks could set a precedent for how federal agencies handle the distribution and revocation of infrastructure-related grants.
Political Undertones
The case adds another layer to ongoing friction between Democratic-led states like New York and the Trump administration’s cabinet. Secretary Kristi Noem, a Republican and former South Dakota governor, has been a polarizing figure within the DHS since her appointment earlier this year.
What Comes Next
If granted, the temporary restraining order would freeze the funding in place while the lawsuit proceeds. Without court intervention, the MTA could lose access to the $34 million grant as soon as midnight.
For a transit system already facing mounting budget pressures and safety challenges, the stakes are high. James’ office has warned that any disruption in federal support could have direct consequences for staffing, emergency preparedness, and rider safety.
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