Midtown’s 34th Street busway project paused over federal funding cut threat

The city has halted work on Midtown Manhattan’s 34th Street busway project after the federal government threatened to restrict funding and approvals over concerns about truck access, emergency vehicle routes, and compliance with national highway regulations.

City officials confirmed Friday that the project is paused while they work with the U.S. Department of Transportation (USDOT) to resolve the matter. The NYC Department of Transportation said it is confident that the design complies with all applicable federal laws and regulations.

“The vast majority of commuters in Midtown are traveling by transit and they deserve world-class, fast, and reliable buses,” NYC DOT spokesperson Vincent Barone said. “The redesign for 34th Street mirrors other street designs from across the city and allows for truck, private, and emergency vehicle access on every block.”

“We will work with the federal government to advance this critical project,” he added.

The 34th Street corridor, which runs across Midtown Manhattan, is part of the National Highway System, making federal oversight a key factor in any redesign that affects traffic and commerce.

FHWA had sent city and state transportation officials formal letters on Sept. 8 and again on Oct. 16 detailing its concerns, including whether the busway would allow safe commercial vehicle deliveries and meet metropolitan planning requirements.

In Thursday’s letter, Sean McMaster of the USDOT’s Federal Highway Administration demanded NYCDOT “cease and desist all activities to implement the 34th Street busway project immediately” until a sit-down meeting about the busway is held. He said he had not received a response from the city to his Sept. 8 letter.

“If NYCDOT and NYSDOT refuse to meet on this project and continue to proceed in a manner that is not compliant with Federal law, I will implement appropriate remedial actions,” he warned. “These actions could entail withholding project authorizations and approvals, restricting the obligation of funding, limiting transfers, or other actions deemed necessary.”

On Friday, he welcomed the pause, saying New York officials had agreed to meet to discuss the project’s impact on the flow of traffic “through one of the city’s most important corridors on our National Highway System.”

“Ensuring our great truckers and emergency vehicles can safely access this important corridor with as few aversions as possible is top priority,” he said in a statement.

‘A slap in the face’

The city first proposed converting a stretch of 34th Street into a dedicated busway on May 20, aiming to increase bus speeds by as much as 15% for thousands of riders daily. Unlike a bus lane, which runs alongside regular traffic, a busway restricts private traffic while allowing buses, certain trucks, and emergency vehicles.

The project previously hit a speed bump over the summer, being temporarily halted before it was once again greenlit as part of an agreement made on Aug. 6 to rezone a chunk of Midtown.

As part of the City Council-approved Midtown South Mixed-Use Plan, the proposed busway on 34th Street will support the nearly 10,000 new homes that stem from the rezoning plan.

The proposal would deliver a busway from 3rd to 9th Avenues, prioritizing buses and trucks while maintaining local access for pickups, drop-offs, and deliveries. About 24 bus routes use the corridor, including the M34/M34A and many express buses from other boroughs.

Like the 2019 launch of the 14th Street busway, local-access vehicles would be required to turn off 34th Street at specific intersections to avoid a traffic violation.

Council Member Erik Bottcher, who represents the area, criticized the federal government’s intervention, calling it unacceptable and “a slap in the face to every New Yorker who depends on public transit.”

“This project was a key achievement of the Midtown South Mixed-Use rezoning, designed to create new homes and jobs while improving how people move through Midtown. To see it derailed by political interference from Washington is unacceptable,” Bottcher said in a statement.

The Council Member accused federal officials of “siding with the car lobby over commuters” and compared the dispute to the Trump administration’s earlier attempts to block congestion pricing.

“We fought hard to make the busway a cornerstone of the MSMX rezoning, and we’re not backing down,” he said. “New York City must stand firm, defend this project, and make it clear that no federal administration will stop us from building a fairer, more sustainable future.”.