OMB Chief Vought Pauses $2.1B Chicago Infrastructure Over DEI Concerns

The Trump administration has paused $2.1 billion in federal funding for major Chicago infrastructure projects, including the Red Line Extension and the Red and Purple Modernization Project, due to concerns over race-based contracting practices tied to diversity, equity, and inclusion (DEI) initiatives. Office of Management and Budget Director Russ Vought announced the suspension, citing the need to ensure funds are not distributed through race- or sex-based contracts, aligning with a recent Department of Transportation interim rule barring such requirements in federal grants. This action follows a similar hold on $18 billion in New York City infrastructure funding, reflecting the administration's broader push to scrutinize DEI programs amid the ongoing government shutdown. The Department of Transportation emphasized that the American public prioritizes efficient project completion regardless of workers' race or gender, and the shutdown has hampered staffing needed to complete these reviews. The administration frames these moves as efforts to eliminate potentially unconstitutional and wasteful contracting practices, while urging Congressional Democrats to end the shutdown to resume important infrastructure work. These developments highlight the Trump administration's focus on targeting programs it views as politically motivated during the budget impasse.