New York State Department of Financial Services

09/14/2026 | Press release | Distributed by Public on 09/14/2026 14:12

Governor Hochul Announces MTA Advances Final Construction Contract of Second Avenue Subway Phase 2

Governor Hochul today announced that the Metropolitan Transportation Authority (MTA) is advancing the fourth and final construction contract for Phase 2 of the Second Avenue Subway, marking a major milestone toward completing the extension of Q service to 125 St in East Harlem. Following this Request for Qualifications (RFQ), the MTA plans to issue a Request for Proposals to qualified contractors by the end of the year and anticipates selecting a contractor in mid-2027. Contract Four is the largest contract of the Second Avenue Subway Phase 2 project and includes the construction of station infrastructure, tracks, and signals for the subway expansion. Work on Contract Four will begin in 2027.

"New Yorkers have been waiting for the Second Avenue Subway for nearly a century and now, with major work underway, we are moving full speed ahead with the final contract to fully deliver this transformative new transit connection to East Harlem," Governor Hochul said. "We fought hard to keep this project moving forward earlier this year and finally break ground on new tunnels this summer. Once this contract is completed, three beautiful and accessible new subway stations will welcome East Harlem to the subway line they have long been promised."

With the first three contracts progressing concurrently, the project budgeted at $6.968 billion is expected to be fully completed by the fall of 2032. This project is made possible by congestion relief revenue and $3.4 billion in federal funding. Upon completion of Phase 2, Q service will run north from 96 St to 125 St and Lexington Ave, an extension of approximately 1.5 miles with three new stations at 106 St, 116 St and 125 St.

MTA Chair and CEO Janno Lieber said, "Three contracts down, one to go in our quest to bring long-awaited transit justice to East Harlem. This fourth and final RFQ covers the architectural finishes and the communications and other systems in the stations - the things that riders directly experience - and we can't wait to get started."

MTA Construction & Development President Jamie Torres-Springer said, "The MTA has saved more than $1 billion to date by applying lessons learned from Phase 1 to Phase 2. We're bringing that same approach to this final contract to bring these stations to life better, faster, and cheaper than before and get East Harlem riders the service they've waited for."

In addition to providing the full systems fit-out for the three fully accessible stations at 106 St, 116 St, and 125 St, and connecting tunnel segments, this fourth contract includes work to connect the new 125 St Station to the existing 125 St 4 5 6 station, and an entrance at Park Ave, one block over, enabling convenient transfers to Metro-North's Harlem-125 St Station and M60 Select Bus Service with service to LaGuardia Airport.

Major work in this last construction contract includes:

  • Structural work: Construction of entrance canopies, station platforms and six above-ground ancillary buildings which will house ventilation, mechanical, and electrical equipment, as well as space for possible ground floor retail and community uses.
  • Mechanical, electrical and plumbing work: Install HVAC, smoke management, fire protection, station and facility power, lighting, plumbing and drainage, and related systems.
  • Accessibility work: Install 22 elevators and 20 escalators across the three stations and facilities.
  • Communications and security systems work: Install public address systems, customer information screens, Help Point intercoms, Wi-Fi, radio, fire and emergency alarms, and security cameras.
  • Track, signal and CBTC work: Install track, third rail, traction power, wayside signal equipment, train detection, communication infrastructure throughout the stations and tunnels
  • Station finishes: Install architectural finishes, station lighting, signage and wayfinding, fare arrays, customer service facilities and artwork.
  • Testing and commissioning work: Test, integrate and commission all systems installed.
  • Site restoration: Complete permanent utility connections and restore streets, sidewalks, traffic signals and other affected areas within the Phase 2 project limits.

Phase 2 Construction Progress

The first contract, awarded in January 2024, covers utility relocation work at the future 106 St Station. The project is currently about 60 percent complete and is expected to be finished by summer 2027. Getting ahead of utility relocation work is a major lesson learned from Phase 1.

The second contract, awarded in September 2025, includes construction of two tunnels, rehabilitation of existing tunnels, construction of the new 116 St Station box, seven shafts for future ancillary buildings and station entrances, and the structural shells for the 116 St and 125 St stations. Final design is more than 50 percent complete. The tunnel boring machine (TBM) is currently under construction, and crews are preparing the TBM launch site for excavation. Excavation of the 125 St entrance shaft has also begun. The contract is forecast to reach substantial completion in September 2029.

The third contract, awarded in April 2026, includes excavation and construction of the 106 St structural shell, tunnel connections, ancillary buildings and station entrances, as well as utility work. The contract is expected to reach substantial completion in the third quarter of 2030.

Delivering Better Transit for East Harlem

East Harlem is a historically underserved neighborhood which has one of the largest concentrations of affordable housing in the United States and where 70 percent of residents rely on transit. Phase 2 is building three new accessible stations right in the heart of the community at 106 St, 116 St, and 125 St, and will offer one-seat rides from East Harlem to the Upper East Side, West Midtown and Coney Island, shortening travel times by up to 20 minutes. The Second Avenue Subway Phase 2 project is also creating thousands of jobs, including union-wage construction jobs. A 20 percent local hiring goal for the project will generate good-paying job opportunities for hundreds of East Harlem residents.

East Harlem has long been promised a new subway connection on Second Avenue. In the 1920s, the Second System proposal, which ultimately became the IND subway system, included service on Second Avenue. In 1948, New York City voters approved bonding intended to build the Second Avenue Subway, which was ultimately left unbuilt after the start of the Korean War. In 1972, construction on the line finally commenced in East Harlem, but was later abandoned in 1975 during the city's fiscal crisis. Sections of the tunneling constructed in the 1970s will be adapted and utilized in Phase 2, including for the 116 St station.

Senator Charles Schumer said, "I secured $3.4 billion in federal funding for the Second Avenue Subway, the largest Capital Investment Grant in history, and this final contract brings East Harlem another big step closer to transportation equity. When the work is done, more than 300,000 riders will benefit every day and I will not stop advocating for construction until the Q is running to 125th Street."

Senator Kirsten Gillibrand said, "New Yorkers have waited decades for the completion of the Second Avenue Subway Extension into East Harlem. This critical infrastructure project will deliver the safe, reliable, and accessible public transportation system that our commuters and families deserve. I am proud to have secured the federal funding that is making this vital expansion to the New York City subway system possible, and I'll continue working to bring home more federal resources to improve public transportation for all New Yorkers."

Representative Adriano Espaillat said, "With this contract advancement, the community of East Harlem is one step closer to subway access - after nearly a century of poor connectivity with our nation's largest train system. Since my election to the U.S. Congress, I have prioritized the expansion of the Second Avenue Subway and generation of local, dignified trade jobs alongside the project. This development is another welcomed victory in our long, winding journey to deliver equitable transportation access and economic growth in El Barrio. I commend our partners, including local officials at the MTA, for their daily efforts to keep the project on time and under budget."

State Senator José Serrano said, "Second Avenue Subway Project is a critical investment in transit equity that is long overdue for residents and commuters from East Harlem and beyond. While this project is vital for our community, it has created challenges for local residents and businesses along 2nd Avenue. The final phase of this project brings us closer to overall completion, and we thank Governor Kathy Hochul, the MTA, and my colleagues in government for bringing us one step closer to delivering the safe, reliable, and accessible system that New Yorkers deserve."

New York City Council Majority Leader Shaun Abreu said, "I'm excited to see the MTA take another major step in delivering this once-in-a-generation transportation project for Upper Manhattan. This subway line will dramatically improve life uptown, from commute times to job opportunities and boosts to small businesses. Like so many others, I'm excited to see the new stations come to life, and I'm grateful for Governor Hochul and Chair Lieber's continued leadership."

New York State Department of Financial Services published this content on September 14, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 14, 2026 at 20:13 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]