Chicago’s leadership just received an unexpected blow from Washington. The Trump administration has frozen $2.1 billion in federal funding for two major Chicago Transit Authority (CTA) projects, citing concerns over race-based contracting practices.

Federal Funding Under Review
Russell Vought, Director of the Office of Management and Budget (OMB), announced the decision on X (formerly Twitter), confirming that funding for the Red Line Extension and the Red and Purple Modernization Project has been paused.

According to Vought, the freeze aims to ensure that no federal dollars are distributed through unconstitutional race- or sex-based contracting requirements.

The U.S. Department of Transportation (USDOT) followed up with an official statement explaining that both Chicago projects are now under administrative review. The department said it will determine whether any discriminatory or illegal contracting practices have taken place.