NYMTA Awards $1.9 Billion Tunnel-Boring Contract

8/28/2025

NY Governor Kathy Hochul and MTA Chair & CEO Janno Lieber. (Photo by Marc A. Hermann / MTA)

The New York Metropolitan Transportation Authority (NYMTA) has approved a $1.972 billion contract to Connect Plus Partners, a joint venture between Halmar International and FCC Construction, for tunnel-boring for Phase 2 of the Second Avenue Subway. The project will extend the Q train from 96 Street to 125 Street and deliver new transit access to East Harlem.

More than 70,000 jobs, including union-wage construction jobs, will result from the project. A 20 percent local hiring goal for the project will generate good-paying job opportunities for hundreds of East Harlem residents.

The new tunnel will extend from 116 Street to 125 Street. Crews under this contract will also excavate space for the future 125 Street Station, and in a cost-containment measure that saves the MTA $500 million will outfit the tunnel along the route—that was built in the 1970s—to accommodate the future 116 Street Station. Early work will commence later this year, with heavy civil construction starting in early 2026 and the tunnel boring itself expected to begin in 2027.

“This is a meaningful step forward not only for the project but everyone in East Harlem and Central Harlem,” said MTA Chair and CEO Janno Lieber. “Locals have waited almost 100 years for their promised subway extension. Thanks to investments from Governor Hochul and our partners in Washington, MTA is moving forward with the largest tunneling contract in agency history, but, more important, with a project that pencils at the lowest cost per rider of any heavy rail project in America.”

This is the second of four construction contracts for the Q train extension. Despite New York City’s high construction costs, the Second Avenue Subway Phase 2’s cost-benefit is projected to have the lowest cost per rider of any active heavy rail project in the country. The project budget is $6.99 billion and is funded in part by revenues from the Congestion Relief Zone tolling program.

“This construction contract for Phase II of the Second Avenue Subway will bring us a big step closer to achieving transportation equity in New York, ensuring East Harlem has greater access to jobs, healthcare and other essential services, while reducing congestion and improving air quality,” said Sen. Charles Schumer (D-NY). “I secured $3.4 billion in federal funding—then the largest Capital Investment Grant in history—to advance this project and when the work is done, more than 300,000 riders will benefit from the Second Avenue Subway every day.”

Rendering of the 125 Street entrance, looking south.

The project will extend Q train service from 96 Street north to 125 Street and then west on 125 Street to Park Avenue, approximately 1.5 miles in total. There will be a direct passenger connection with the existing 125 St subway station on the Lexington Avenue line. Phase 2 will also feature an entrance at Park Avenue to allow transfers to the Metro-North Railroad’s Harlem-125 Street Station, with connections to the 4, 5, and 6 lines and M60 Select Bus Service to LaGuardia Airport.

“As the senior northeastern member of the Transportation and Infrastructure Committee, I have long fought for funding for the Second Ave Subway,” said Rep. Jerrold Nadler (D-NY). “The awarding of the construction contract is a major milestone in the next phase of extending the subway line northwards to Harlem that will create transit connectivity and improve commuting times for my east side constituents and all New Yorkers.”