More than $200 million in federal funding is on the line as New York state battles with the Department of Homeland Security in federal court over a series of hefty cuts to the state’s counterterrorism budget.
New York Attorney General Letitia James sued the DHS late Tuesday, alleging the agency illegally withheld millions of dollars in federal funding for MTA security measures. James said the transit system planned to use the roughly $33 million to counter terrorism and other safety risks.
A federal judge sided with the state Wednesday afternoon, temporarily blocking the federal government from moving or withholding the funds. U.S. District Judge Lewis Kaplan granted a temporary restraining order that bars the DHS from reallocating or allowing the money to lapse, at least through October 15, unless extended.
“Today, the court temporarily stopped the federal government from ripping away $33 million in anti-terrorism funds that keep those riders safe,” James said in a statement.
Her lawsuit came the same day a federal judge temporarily blocked the DHS from distributing a different set of federal counterterrorism grants under a new formula that would have cost the state and its cities more than $180 million, according to Gov. Kathy Hochul’s administration.
“They slashed it to zero and then they took those funds and reallocated them to other states,” James said on Wednesday about the MTA funding. “The condition of that eligibility is risk, and after 9/11, I can think of no other state that is facing the risk than New York.”
The DHS issued a statement Wednesday defending the agency’s actions, noting that New York City alone has received about 30% of all funds through the Urban Area Security Initiative program since it was created following the 9/11 attacks. The department also said a significant amount of funding through the program — about $1.6 billion nationwide — remains unspent, including “substantial balances in New York.”
“Our goal is to ensure communities remain secure while making the system more effective and accountable, moving away from the fraud, waste and abuse of the past,” the department’s statement reads.
The MTA funding was meant to be used for projects like upgrading security systems across New York City’s mass transit systems, designed to protect riders from chemical and explosive threats through surveillance, cybersecurity defenses and emergency evacuation protocols, according to James’ office.
She said the decision to withhold the money came without warning, and blamed the Trump administration for trying to slash protections for the city because of its “sanctuary” policies for immigrants.
Transit systems across the country receive money from the grant program based on their risk of attack, according to James’ office. The MTA has historically received the highest share of the funds because nationwide, it carries nearly 40% of transit riders and is one of the biggest targets for threats.
James asked for an immediate temporary restraining order against DHS Secretary Kristi Noem, asking the court to freeze the funds while the court resolves the case. A hearing on the request was set for 2 p.m. Wednesday.
By 6:30 p.m., James’ office said the court had granted the request, blocking the DHS from diverting the transit security funding. The ruling covers up to $49.8 million in potential federal funds.
The MTA grant cut is only a fraction of the money the Trump administration has tried to withhold from New York’s counterterrorism programs. In a separate move, the U.S. Department of Transportation on Wednesday announced it would halt funding for some of New York’s largest infrastructure projects because the state requires some of the work go to minority- and women-owned businesses.
In a letter to U.S. Homeland Security Secretary Kristi Noem on Tuesday, Gov. Kathy Hochul said the federal cut reduced the state’s counterterrorism funding by 86% from its previous allocation.
A federal judge in Rhode Island blocked the Trump administration’s efforts to freeze those funds from New York, Washington, D.C. and 10 other states late Tuesday, granting a temporary restraining order that prohibits the government from distributing the money for the time being while the court case plays out.
Jackie Bray, commissioner of the New York State Division of Homeland Security and Emergency Services, said the DHS was being “disingenuous.” In general, the state gets a three- to five-year window to spend the grants, and the state and its municipalities still have time to spend the money the DHS is painting as “unspent,” she said.
“ What they’re doing is cherry-picking the last three years. Which are by design not meant to be all spent at one time,” Bray said.
In her letter to Noem, Hochul warned her not to “play games with this critical security funding.”
“I demand you reverse this decision and restore funding for those that work to protect the number one terrorist target in America: New York,” Hochul wrote.
The MTA didn’t immediately respond to a request for comment on Wednesday.
This story has been updated with new information.