CTA sues Trump administration over frozen rail funding

CTA sues Trump administration on March 20 over $2.1 billion in federal funding. According to CTA, the money was already obligated for the Chicago Transit Authority. It was meant for the Red Line extension and Red and Purple modernization projects.

Why CTA sues Trump administration over project funding?

The agency laid out that argument in a federal court filing. The case was filed in the Northern District of Illinois. It said the U.S. Department of Transportation was not following its statutory and regulatory requirements. Those rules concerned funding suspensions. It made the same claim about the Federal Transit Administration. Also, the CTA alleged that the administration was singling out Democrat-run programs, Politico reported.

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In a press release, CTA officials said, “The prolonged pause threatens continued progress on RLE and RPM. If funding is not promptly restored, CTA will be forced to stop work on both projects.”

Funding pause puts Red Line extension and RPM at risk

On Oct. 3, 2025, the White House Office of Management and Budget halted funding for both projects. It did so during the federal government shutdown, as previously covered by Railway Supply. At the same time, CTA officials said the USDOT sent a notice that day. The notice went to the transit agency. The USDOT said both projects were under review. The review was to ensure “nondiscrimination in [USDOT’s] financial assistance program.”

In addition, CTA said it complied with requests from both agencies. Those requests came from the USDOT and the Federal Transit Administration. They concerned the projects’ compliance with the Disadvantaged Business Enterprise program. Still, officials said USDOT has sent no further communication since Dec. 10, 2025.

The Red and Purple modernization project is near completion. Meanwhile, the Red Line extension remains in progress. The RLE project will extend rail service 5.3 miles south once completed. It will run from 95th Street to 130th Street. That stretch is on Chicago’s far South Side.

Other transit agencies also challenged paused federal funds

The CTA is one of two transit agencies in this situation. The agencies’ federal funding was put on hold in October 2025. Separately, the Metropolitan Transportation Authority also sued the Trump administration over suspended funds. According to Reuters, it won its first case. That case was tied to money for the Hudson River Tunnel project. For example, the MTA also filed another lawsuit earlier this month. It concerned funding for the Second Avenue Subway project in New York City.

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