The New York Metropolitan Transportation Authority (MTA) has received $886m funding from the US Department of Transportation (DOT) to rebuild and replace transportation equipment and facilities damaged or destroyed by Hurricane Sandy.

MTA will use $535m to repair Greenpoint, Montague, and Steinway damaged under-river tunnels, while $138.9m will be used to restore damaged substations and power infrastructure for the Long Island Rail Road (LIRR) and Metro-North Railroad.

Another $88.1m tranche will be used to repair essential communications and signal equipment for Metro-North (system-wide) and LIRR’s Long Beach Branch and Westside storage yard.

"The funds we are providing today will go a long way to help the MTA."

MTA will use $91.5m to restore damaged rights of way on the Metro-North Harlem, Hudson, and New Haven Lines including design services, while $32m will be invested to repair stations, employee facilities, and fare collection equipment for both rail and bus facilities.

Federal Transit administrator Peter Rogoff said: "One of our highest priorities in the wake of this record-breaking storm is to ensure that the MTA is able to restore and protect a public transportation network that operates as the central nervous system for New York City and beyond.

"We will make sure that taxpayer dollars are well spent, and that no one is asked to pay to restore the same transit infrastructure when the next big storm hits."

US Transportation Secretary Anthony Foxx said: "The funds we are providing today will go a long way to help the MTA continue clearing debris from tunnels, rebuilding stations, and replacing electrical systems damaged by flooding, giving transit riders a transit system that is stronger than ever before."

The Federal Transit Administration (FTA) has already allocated $3.8bn to MTA for Sandy-related work.