The White House has decided to hold back over $2 billion in federal funds for major transportation projects in Chicago. This move was announced by Russell Vought, the White House Budget Director, as part of the Trump administration’s broader efforts to reduce the size of the federal government during a government shutdown.
Vought posted on X that the suspended funds specifically affect the Red Line Extension and the Red and Purple Modernization Project. He said the money is being frozen to prevent funding from supporting what the administration calls race-based contracting. These projects are important to Chicago’s transit system, with the Red Line Extension aiming to add four new stations and stretch service 5.6 miles south of 95th Street. That project secured nearly $2 billion in federal grants earlier this year and is expected to be finished by 2031. The Red and Purple modernization plan includes reconstructing stations, building a new bypass, and upgrading signals.
The announcement comes as the government shutdown enters its third day, with Democrats and Republicans deadlocked over federal funding. The shutdown has already led to the pause of billions of dollars in funding for infrastructure and clean energy projects, particularly targeting Democratic-led states like New York and Illinois.
President Trump has openly threatened to use the shutdown to cut back federal programs favored by Democrats and even to fire thousands of federal workers. Vought and the president met recently to discuss potential job cuts, with more details expected soon. House Speaker Mike Johnson also weighed in, warning that the shutdown’s effects will worsen if it continues, and stressing the White House’s focus on funding priority areas.
Chicago has been in the spotlight for the administration. Trump has repeatedly criticized the city over crime and has suggested sending National Guard troops to address what he calls a lawlessness problem. Yet the city’s transit projects, crucial for expanding and modernizing public transportation, now face delays because of the frozen federal money.
Neither city officials nor the Chicago Transit Authority have commented on this latest development. The federal government says these funding holds are meant to stop what it sees as unfair and wasteful contracting practices tied to race. But for many in Chicago, the delay means postponing much-needed improvements to their transit system amid ongoing political battles at the national level.