New York Attorney General Letitia James has filed a lawsuit and an emergency motion for a temporary restraining order against Secretary Kristi Noem and the U.S. Department of Homeland Security (DHS) over the withholding of funds from the Metropolitan Transportation Authority (MTA). The dispute centers on money requested under the Transit Security Grant Program (TSGP), which is intended to help transit systems prepare for and respond to terrorist threats.
The DHS recently reduced New York’s TSGP award from nearly $34 million to zero, redirecting those funds to other states. This move comes despite the MTA’s high ridership and its significant security needs as one of the nation’s largest transit systems. The decision appears to be linked to New York’s “sanctuary” policies, according to reports.
Attorney General James stated, “New Yorkers lived through the worst terrorist attack in our nation’s history, and we know what is at stake here. Congress created this program after 9/11 to protect millions of daily riders. 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.”
The TSGP was created following the September 11 attacks with eligibility based only on risk of attack. Historically, the MTA has received a large share of these federal resources due to its size and threat profile, including $36 million last year. DHS had previously indicated that New York would receive almost $34 million this year before reversing course earlier today.
State officials learned about the funding cut through media reports rather than direct communication from DHS or FEMA. Despite repeated requests throughout the day, no formal notice or explanation was provided.
The withheld funding was earmarked for projects such as protecting stations and tunnels against chemical and explosive threats, upgrading surveillance systems, strengthening cybersecurity defenses, and improving emergency evacuation protocols for more than five million daily riders.
Attorney General James is seeking immediate court intervention because if action is not taken before midnight—the end of the federal fiscal year—New York could lose access to these funds permanently. Her motion asks the court to prevent DHS from reallocating or returning these funds until legal questions are resolved.
The lawsuit claims that DHS’s actions violate administrative law, exceed statutory authority, and conflict with constitutional principles regarding equal treatment among states. It seeks restoration of New York’s full allocation under TSGP and asks that future awards be determined solely by risk assessment as mandated by law.
