New York City’s transit agency is set to approve a $1 billion excavation contract as part of its Second Avenue subway expansion — but the deal might be stalled if federal funds for the project are not released.

While the board of the Metropolitan Transportation Authority is expected to authorize the agreement on Wednesday, the transit agency won’t be able to enter the contract until it receives about $60 million of suspended funds, according to MTA officials. The operator of the city’s subways, buses and commuter rails last week sued the Trump administration for the money, which has been on hold since October as the US Department of Transportation reviews the transit agency’s contracting process.