The Metropolitan Transportation Authority (MTA) has awarded a $1.97 billion tunneling contract for Phase 2 of the Second Avenue Subway, which will extend Q train service from 96th Street to 125th Street in East Harlem.

The contract went to Connect Plus Partners, a joint venture of Halmar International and FCC Construction. The scope includes boring an 8,400-foot tunnel between 116th and 125th Streets, converting a 2,500-foot tunnel segment built in the 1970s into a station box, and excavating space for the future 125th Street Station. Crews will also prepare infrastructure for the planned 116th Street Station.

The tunneling package is the second of four major contracts. The overall Phase 2 project has a budget of $6.99 billion, which covers tunneling, station construction, and systems installation. Funding sources include federal Capital Investment Grants and revenues from the Congestion Relief Zone tolling program.

Phase 2 will add three new ADA-accessible stations at 106th, 116th, and 125th Streets. The extension is expected to serve 110,000 additional daily riders, provide direct connections to the Lexington Avenue subway line and Metro-North Railroad at 125th Street, and reduce travel times by up to 20 minutes.

Utility relocation began in 2024. Heavy civil construction is scheduled to start in early 2026, with tunnel boring to follow in 2027. Revenue service is planned for September 2032.

The project incorporates cost-saving measures, including reuse of tunnel segments from the 1970s, smaller station designs, and a variable-density tunnel boring machine. These changes have reduced costs by an estimated $1.3 billion, making Phase 2 about 10 percent less expensive than Phase 1.

Phase 2 is projected to generate more than 70,000 jobs, with a 20 percent local hiring requirement.