The Metropolitan Transportation Authority (MTA) is moving full steam ahead on several major infrastructure projects across New York City—even as questions loom over how the long-term funding will be secured.

Over the past several weeks, the New York City-based transit agency has announced a series of large-scale initiatives that signal its continued commitment to upgrading and expanding the city’s transit network. These include long-anticipated projects like the Second Avenue subway extension and the Interborough Express (IBX), both of which are making significant headway.

In March, the MTA awarded a $186.6 million contract to a joint venture between AECOM, headquartered in Dallas, and Kansas City-based HNTB. This team will oversee Phase 2 of the Second Avenue subway extension, a transformative project aimed at expanding subway access in East Harlem.

“The JV team will oversee the Second Avenue subway extension to East Harlem,” said Evan Eisland, executive vice president and general counsel of MTA Construction and Development, during a board meeting on March 24.

This next phase of the project will extend the Q line from its current endpoint at 96th Street to 125th Street, adding three new stations and directly connecting more residents in Upper Manhattan to the broader subway system.

Meanwhile, attention is also growing around the Interborough Express project—a 14-mile light-rail line that would connect Bay Ridge in Brooklyn to Jackson Heights in Queens. By using existing Long Island Rail Road and CSX freight corridors, the project aims to provide much-needed crosstown service and connect riders to 17 existing subway lines and the LIRR.

The MTA held its first public open house for the project on March 27 in Queens, outlining the project's scope and expected timeline to community members and stakeholders.

“The agency expects to move into the design phase soon,” said Aryeh Lemberger, senior vice president at Montreal-based contractor WSP, during the New York Build conference in March. WSP, which the MTA tapped in August 2023, is currently conducting the project’s environmental review.

But even with these major undertakings underway, funding remains a pressing concern for the transit agency.

While state-level funding has temporarily stabilized the MTA’s looming budget shortfalls, the last of its federal pandemic relief funds is expected to dry up in the coming months. This leaves a significant gap in the agency’s long-term financial picture, just as it embarks on some of its most ambitious infrastructure projects in decades.

To further complicate matters, New York State lawmakers are still ironing out the details of the state’s next budget. After missing the April 1 deadline, legislators passed a short-term extension on April 3 to keep the government running while final negotiations continue. Governor Kathy Hochul has proposed a $252 billion spending plan for fiscal 2026, reflecting a 3.6% increase from the previous year.

In addition to transit funding, budget negotiations have also included heated debates over proposed expansions to prevailing wage requirements. If adopted, these changes would primarily affect market-rate commercial and retail developments that receive government subsidies.

At the same time, another potential revenue source—New York’s congestion pricing program—remains in limbo. The policy, which is expected to generate $500 million in its first three years, has drawn criticism from federal officials.

Transportation Secretary Sean Duffy announced on March 20 that the federal government would give New York 30 days to shut down the program, casting doubt on one of the MTA’s future funding streams.

Beyond the Second Avenue subway and IBX, the region is also eyeing progress on other multibillion-dollar public works. These include the $16 billion Gateway Program to modernize rail service between New York and New Jersey, a $7 billion overhaul of Penn Station, and sweeping airport renovations across the metro area.

Despite the funding questions, the MTA seems determined to stay the course.

With its largest projects now inching forward and public meetings underway, the agency continues to bet big on a modern, interconnected transportation future for New York—even if the full financial blueprint has yet to be finalized.

Originally reported by Sebastian Obando in Construction Dive.