The Metropolitan Transportation Authority (MTA) approved a $1.97 billion contract to begin tunnel-boring construction of Phase 2 of the Second Avenue Subway, a long-sought expansion that at long last will bring Q train service north into East Harlem.
The contract went to Connect Plus Partners, a joint venture of Halmar International and FCC Construction, and is the largest tunneling contract in MTA history. It is the second of four large construction packages that will advance the line from 96th Street to 125th Street, featuring three new stations at 106th, 116th, and 125th Streets.
What the Contract Covers
Under the new agreement, crews will bore tunnels between 116th Street and 125th Street and excavate space for eventual 125th Street Station. In addition, workers will prepare sections of tunnel built in the 1970s for a planned 116th Street Station, and the MTA will save about $500 million.
Construction will take place far underground—35 to 120 feet below street level—using enormous 750-ton tunnel-boring machines with 22-foot-diameter, diamond-tipped drill heads. Early work will begin later this year, heavy civil construction in 2026, and tunnel boring in 2027.
Long-Awaited Relief for East Harlem
The project is particularly important to East Harlem, perhaps the most transit-dependent community in New York City, where nearly 70% of the residents rely on public transport and subway access has long been restricted. When completed, Phase 2 will carry an additional 110,000 daily riders and cut travel time by up to 20 minutes.
This is a major milestone for the project and for all of East and Central Harlem,” said MTA Chair and CEO Janno Lieber. “The neighborhood has waited almost 100 years for this extension, and with the backing of the state and federal governments, we are now moving forward with the largest tunneling contract in the history of our agency.”
Project Timeline and Related Contracts
Phase 2 comprises four construction contracts:
Utility Relocation: The first contract, won in January 2024, for utility work from Second Avenue to 105th and 110th Street is to prepare the ground for the eventual 106th Street Station.
Tunnel Boring (ongoing contract): Approved this month, it will perform the tunneling and station box excavation for the 125th Street Station.
106th Street Station: The third contract, in the procurement process, will address underground space for the 106th Street Station.
System Fit-Out: The fourth and final package, currently being designed, will deliver station finishes, track, signals, power, and communications.
Second Avenue Subway Phase 2 comes with a hefty price
The Phase 2 project cost of $6.99 billion is financed in part with revenue from New York’s new congestion pricing plan. Revenue service is expected to begin in September 2032, keeping the expansion on time and within budget. New York is pressing ahead with transformative transportation upgrades, including the replacement of the Midtown Bus Terminal and the Gateway Hudson Tunnel Project, two of the largest infrastructure efforts currently underway.
Cost Savings and Improved Practices
MTA concentrated on efficiency and cost containment, using the lessons of Phase 1. Beyond tunnel reuse in 1970s-built tunnels, the agency has reduced risk through early utility relocation, made more flexible contracting designs, and minimized ancillary space sizes. These steps have achieved more than $1.3 billion in savings.
MTA Construction and Development President Jamie Torres-Springer noted that the agency is determined to deliver faster and at lower cost. “Today’s contract award brings us closer to world-class transit service in East Harlem,” he said. “Using lessons from Phase 1, we’re pushing to complete this work better, faster, and cheaper than ever.”
Broader Impact, Jobs
Second Avenue Subway Phase 2 will generate more than 70,000 jobs, with 20% of them hired locally to ensure the project benefits the community in East Harlem. In addition to new station stops, the 125th Street hub will have direct transfers to the Lexington Avenue line, Metro-North’s Harlem-125th Street Station, and the M60 Select Bus Service to LaGuardia Airport.
Governor Kathy Hochul placed the milestone in perspective as a tipping point for the neighborhood. “It’s been 100 years since East Harlem was promised a new subway, and we’re finally getting it done,” she said. “This expansion will shorten commute time for more than 100,000 daily commuters and bring new vitality to the neighborhood.”
Looking Back and Ahead
The Second Avenue Subway has been discussed since the 1920s, with multiple false starts over the decades. Phase 1, completed in 2017, opened three new stations from 63rd Street to 96th Street, marking the city’s largest subway expansion in half a century. With Phase 2 now moving forward, the long-promised northern extension is finally within reach.
When completed, the Q train extension will not only bring much-needed transit equity to East Harlem but also be one of the best urban transit investments in the nation.
Second Avenue Subway Phase 2 Project Factsheet
Project Overview
Location: Second Avenue, Manhattan (96th Street to 125th Street)
Service: Q train extension into East Harlem
Total Budget: $6.99 billion
Completion Date: September 2032
Key Contract Details
Recent Award: $1.97 billion tunnel-boring contract to Connect Plus Partners (joint venture between Halmar International & FCC Construction)
Significance: Largest tunneling contract in MTA history
Contract Scope: Tunnel boring between 116th-125th Streets, excavation for future 125th Street Station, outfitting 1970s tunnel sections for future 116th Street Station
New Stations
106th Street (East Harlem)
116th Street (East Harlem)
125th Street (East Harlem/Central Harlem)
Technical Specifications
Tunnel Depth: 35-120 feet underground
Boring Equipment: 750-ton tunnel-boring machines with 22-foot diamond-studded drill heads
Construction Timeline: Preparatory work begins later in 2025, heavy civil construction expected 2026, tunnel boring scheduled 2027
Community Impact
Daily Ridership: Additional 110,000 riders projected
Time Savings: Up to 20 minutes reduced commute times
Transit Dependency: Serves area where 70% of residents rely on public transit
Jobs Created: 70,000+ jobs with 20% local hiring commitment
Construction Phases
Utility Relocation (awarded January 2024) – Utility work along Second Avenue from 105th-110th Street to prepare ground for future 106th Street Station
Tunnel Boring (approved August 2025) – Tunneling and station box excavation for 125th Street Station
106th Street Station (in procurement) – Underground space for 106th Street Station
System Fit-Out (in design) – Station finishes, tracks, signals, power, communications
Key Connections
Transfer to Lexington Avenue line at 125th Street
Metro-North Harlem-125th Street Station access
M60 Select Bus Service to LaGuardia Airport
