Attorney General Letitia James is taking the U.S. Department of Homeland Security (DHS) to court after the agency abruptly pulled nearly $34 million in anti-terrorism funding from the MTA — with no notice and just hours before the money would vanish at midnight.
The emergency legal action, filed September 30, seeks a temporary restraining order to preserve New York’s federal Transit Security Grant Program (TSGP) funds, which were supposed to protect the country’s busiest transit system from terror threats, cyberattacks, and other emergencies.
“This program was created after 9/11 for one reason: to keep riders safe,” said Attorney General James. “I’m asking the court to step in before midnight to stop this dangerous political stunt and prevent millions of New Yorkers from being put at risk.”
Feds slash funds with no explanation
DHS had initially told the MTA it would receive $33.9 million, in line with past years. But on September 30, the department cut the award to zero, reportedly because of New York’s “sanctuary” immigration policies — a move the AG’s office says is illegal and retaliatory.
The MTA found out about the decision through a news report just hours before the federal fiscal year ended. DHS and FEMA provided no formal explanation or notice.
Meanwhile, some states with lower-risk transit systems saw their funding increased.
What’s at stake
The MTA had planned to use the funding to:
- Protect stations and tunnels from chemical and explosive threats
- Upgrade surveillance and communications systems
- Strengthen cybersecurity defenses
- Improve emergency evacuation protocols
Losing the funds would mean losing the ability to implement these vital protections across a transit system that carries over 5 million riders each day.
Attorney General James is asking the court to:
- Stop DHS from disbursing or reclaiming the funds at midnight
- Prevent the money from being redirected to other states
- Preserve the funds while the lawsuit plays out
Legal challenge underway
Filed in federal court in Manhattan, the lawsuit accuses DHS of violating the Administrative Procedure Act, exceeding its authority, and undermining the constitutional principle of equal sovereignty among states.
James is seeking to fully restore New York’s funding and ensure future grants are based strictly on risk — not politics.
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