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The U.S. government has frozen $2.1 billion in funding for major Chicago infrastructure projects, Office of Management and Budget Director Russ Vought announced Friday. The move comes during the ongoing partial government shutdown and marks another blow to Democratic-led cities.
The projects impacted include the Chicago Transit Authority’s (CTA) Red Line Extension and the Red and Purple Modernization Project, critical initiatives aimed at modernizing one of the nation’s largest transit systems. According to Vought, funding was halted to ensure compliance with a new rule prohibiting race-based contracting, part of a broader review by the U.S. Department of Transportation (USDOT).
This decision follows similar actions earlier in the week, when $18 billion in transit projects in New York, such as the Hudson Tunnel and Second Avenue Subway, were also put on hold. Additionally, the Department of Energy canceled nearly $8 billion for hundreds of energy initiatives across 16 Democratic-led states, including California and New York.
In the final days of the Biden administration, nearly $2 billion had been allocated to extend Chicago’s Red Line by 5.5 miles, connecting the Far South Side to the city’s rail system. Supporters emphasized that the project would reduce transit inequities in predominantly Black and underserved neighborhoods.
Despite the setback, Illinois Governor JB Pritzker and the CTA, which serves more than 300 million riders annually and ranks as the third-largest U.S. transit agency, have not yet commented. The USDOT also announced it would delay a $300 million reimbursement for the subway project due to the shutdown.
The Trump administration has long targeted transit funding for cities like New York, Boston, and Chicago, framing it as part of a campaign against “Democrat Agencies.” President Trump has also vowed to deploy the National Guard to Chicago, further escalating tensions as federal immigration enforcement clashes with local officials.
Meanwhile, the Hudson River tunnel project—a $17.2 billion plan crucial for Amtrak and New Jersey commuters—faces delays that could threaten the economic stability of a region generating 10% of U.S. output.
