The Trump administration has officially put a hold on $2.1 billion in critical Chicago infrastructure projects, as announced by Office of Management and Budget Director Russell Vought on Friday. This significant decision primarily affects two key initiatives aimed at enhancing the city's transit system. Vought's statement came on the third day of the ongoing U.S. government shutdown, a situation that has led to increased scrutiny of federal funding allocations.
This announcement follows two major decisions by the Trump administration targeting funding in cities and states governed by Democrats. President Donald Trump and Republican lawmakers have placed the blame for the government shutdown squarely on the shoulders of Democrats in Congress. On Thursday, Trump claimed that this shutdown has provided him with a rare opportunity to cut funding to what he described as "Democrat Agencies."
On Wednesday, Vought revealed that the Department of Transportation has frozen $18 billion in federal funding for two significant infrastructure projects in New York City. Similar to the funding freeze impacting Chicago, officials argue that the decision is intended to ensure that federal funds are not being allocated for race-based contracting practices. On the same day, Vought also announced that the Department of Energy had canceled nearly $8 billion in funding for climate-related projects across 16 states, all of which were won by Democratic presidential nominee Kamal Harris in the 2024 election.
In a post on social media platform X, Vought stated that the $2.1 billion allocated for Chicago infrastructure projects—specifically the Red Line Extension and the Red and Purple Modernization Project—have been suspended. This move aims to ensure that funding is not being utilized for race-based contracting. Both projects fall under the jurisdiction of the Chicago Transit Authority (CTA), which manages the city's train and bus systems.
The Red Line Extension project plans to extend the train line by 5.5 miles, adding four new stations between the existing terminal at 95th/Dan Ryan and 130th Street. Meanwhile, the Red and Purple Modernization Project is focused on reconstructing vital infrastructure along these train lines. Following the announcement, the U.S. DOT confirmed that they issued an interim final rule (IFR) this week, which prohibits race- and sex-based contracting requirements from federal grants.
To ensure compliance with this new rule, the USDOT has communicated with the Chicago Transit Authority, informing them that both the Red Line Extension and Red and Purple Modernization projects are currently under administrative review. This review aims to assess whether any unconstitutional contracting practices are present. The remaining federal funding for these critical projects totals $2.1 billion, in addition to ongoing reviews of New York's Second Avenue Subway and Hudson Tunnel projects.
Illinois, much like New York, is recognized for promoting race- and sex-based contracting and other racial preferences as a matter of public policy. This is breaking news, and updates will be provided as more information becomes available.
