The Trump administration Friday announced it has paused $2.1 billion of federal funds for the Chicago Transit Authority in its latest freeze on infrastructure dollars across the country.
The pause comes as the U.S. Department of Transportation on Friday issued a revamped final rule that bars race- and sex-based contracting requirements from federal grants. As part of the rule's implementation, the DOT sent a letter to the CTA saying its two largest projects, the Red Line Extension and the CTA Red and Purple Modernization Program, are "under administrative review to determine whether any unconstitutional practices are occurring."
The move follows this week's freeze on $18 billion of federal dollars for two high-profile New York City projects, the 2nd Avenue Subway extension and the Hudson Tunnels project, and $8 billion for various clean energy projects in Democratic states.
Since taking office, the Trump administration has sought to put its own stamp on infrastructure funding in part by unwinding the Biden administration's emphasis on diversity, equity and inclusion. Among other criteria, the DOT has
Chicago's funds have been "put on hold to ensure funding is not flowing via race-based contracting," Office of Management and Budget Director Russell Vought said Friday in a
"Illinois, like New York, is well known to promote race- and sex-based contracting and other racial preferences as a public policy," the DOT said in a statement. The agency said the CTA has allocated 21% of its spending on the Red-Purple Modernization project to DBE firms. "Together, these critical reviews are intended to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices," the agency said.
The largest project in CTA history, the 5.6-mile Red Line Extension would move the elevated line's South Side terminus from 95th Street to 130th Street. The $5.75 billion price tag includes $2 billion of federal funds, covering 34% of costs, that the Biden administration awarded in late 2024 from the Federal Transit Administration's capital investment grants program. The FTA inked a
Construction is set to begin in 2026. The city in 2022
The CTA also won $499.2 million in Federal Transit Administration discretionary grants and $165.5 million of FTA Major Capital Investment Grant funds for the Red Purple Modernization project, which renovates existing stations on the city's North Side.
The Red Line extension website notes that "CTA has required workforce participation goals on major construction projects to create a path for underrepresented and residents of economically disadvantaged areas to career opportunities in the building trades, union apprenticeships and other construction-related jobs."
The CTA did not respond to a request for comment by press time. In a statement, Chicago Mayor Brandon Johnson called for the cuts "to be immediately reversed. Chicagoans have waited far too long to turn back now. We will fight to ensure that the Red Line Extension and the Red and Purple Modernization Project move forward."
