Trump Administration Freezes $2.1B Chicago Transit Funds Amid Government Shutdown

President Donald Trump's administration has frozen $2.1 billion in federal funding for Chicago's major transit projects, specifically the Red Line Extension and the Red and Purple Modernization Program, citing concerns over race- and sex-based contracting practices. This move is part of a broader pattern of withholding funds from Democratic-led cities, including $18 billion frozen for New York infrastructure and $8 billion for clean energy projects in Democratic states, amidst the ongoing government shutdown. The Department of Transportation is reviewing Chicago's projects for compliance with new federal rules that bar minority contracting preferences, but the review is hindered by furloughed staff due to the shutdown. Chicago officials, including Mayor Brandon Johnson and Governor JB Pritzker, have criticized the freeze as politically motivated and harmful to economic development and public transit reliant communities, especially those in disadvantaged and predominantly Black neighborhoods. The administration's actions are seen as leveraging federal funds to reshape infrastructure priorities and challenge diversity, equity, and inclusion policies implemented by the Biden administration. The funding freeze has sparked local frustration and concern over job losses and stalled community uplift efforts, underscoring tensions between the Trump administration and Democratic local governments.