OMB Pauses $2.1B Chicago Transit Funding

Announced by OMB Director Russell Vought amid the government shutdown, the Trump administration paused $2.1 billion in federal funding for Chicago Transit Authority projects, including the Red Line Extension and the Red and Purple Modernization. Officials said the hold is to review whether federal grants are flowing via race-based contracting and to enforce a new DOT rule barring race- and sex-based contracting, and the projects have been placed under administrative review. The Red Line Extension had secured roughly a $1.97 billion FTA grant and was slated to begin construction in 2026. Local leaders — including Mayor Brandon Johnson, Gov. J.B. Pritzker and Rep. Mike Quigley — condemned the move as politically motivated and warned it will delay jobs, economic development and transit access for predominantly Black South Side neighborhoods. The Chicago pause comes amid other freezes during the shutdown — about $18 billion for New York transit projects and roughly $8 billion for clean-energy programs — bringing at least $26–28 billion in withheld federal funding so far. The DOT review is complicated by furloughed staff, and critics say the administration is weaponizing federal dollars to pressure Democrats to reopen the government.