The Trump administration announced a freeze on $2.1 billion in infrastructure projects in Chicago, primarily impacting efforts to enhance the city’s transit system. That decision came directly from Director Russell Vought of the Office of Management and Budget. With it being the third full day of the U.S. government shutdown, this was momentous. Abolishing it would hit the Chicago Transit Authority—the agency in charge of the city’s extensive train and bus systems—hardest.
These moves have led Illinois to be considered a leader in race- and sex-based contracting policies. This trend reflects the public standards that were set public and private—all across New York. In each of these states, the federal government is worried that funds could be used for race-based contracting and this triggered this freeze. The U.S. Department of Transportation (USDOT) announced an interim final rule barring such practices from federal grants, indicating a broader review of projects in Democratic-led cities and states.
“This week, USDOT issued an interim final rule (IFR) barring race- and sex-based contracting requirements from federal grants.” – U.S. DOT
The Chicago region infrastructure projects are the CTA Red Line Extension and the CTA Red and Purple Modernization Program. The purpose of the freeze is to prevent these funds from being used to perpetuate any unconstitutional contracting practices. USDOT officials have written to the Chicago Transit Authority notifying them that an administrative review is now underway.
“$2.1 billion in Chicago infrastructure projects–specifically the Red Line Extension and the Red and Purple Modernization Project –have been put on hold to ensure funding is not flowing via race-based contracting.” – Russ Vought
Chicago’s recent funding freeze is not an anomaly, representing as it does a similar reversal in New York. There, counter-reviews started from the outset for big infrastructure projects, like the Second Avenue Subway and Hudson Tunnel. Such actions are consistent with the Trump administration’s overall strategy. Their goal is to selectively target federal investment in areas run by liberal Democrat mayors and governors.
President Trump has publicly attributed the ongoing government shutdown to Democrats in Congress, claiming it offers him an “unprecedented opportunity” to cut funding to what he describes as “Democrat Agencies.” The administration’s recent actions are indicative of this mood. They carry a cost of almost $8 billion in canceled funding for climate-related projects in all 16 states that Democratic presidential nominee Kamala Harris carried in her 2024 electoral victory.
With the deadlock ongoing Chicago stakeholders are left with no idea whether their important infrastructure improvements will ever be realized. Unsurprisingly, this funding freeze goes beyond purely financial concerns. More importantly, it tears a massive hole in transit services that millions of residents rely on every single day.
“To continue implementation of this rule, USDOT today sent letters to the Chicago Transit Authority (CTA) to inform them that two projects — the CTA Red Line Extension and the CTA Red and Purple Modernization Program – are also under administrative review to determine whether any unconstitutional practices are occurring,” – U.S. DOT