USDOT put almost $2,1 billion in federal funding for massive Chicago and New York transit and rail projects on hold due to the fact that it initiated a civil rights compliance review.

This is reported by the railway transport news portal Railway Supply.

USDOT Freezes $20 Billion in Rail Funding
Photo – Shutterstock

USDOT Stops Funding During Civil Rights Audit

The agency explained that the review will decide if gender-based or race contracting is illegal under federal law. This ruling put on hold funding for the Hudson Tunnel, the Second Avenue Subway Phase Two, and the Chicago Transit Authority’s two projects.

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In New York, the Hudson Tunnel will construct two new rail tubes below the Hudson River and rebuild an ancient Amtrak and NJ Transit connection. The Second Avenue Subway expansion continues the Q line through East Harlem with new stations at 106th, 116th, and 125th Streets.

Officials would have to postpone $300 million in disbursements for thesubway until this review is completed. However, the process cannot continue until Congress rescues the budget because the government shutdown furloughed USDOT civil right staff.

USDOT’s Ruling Triggers Political and Economic Urgings

Senator Chuck Schumer and Rep. Hakeem Jeffries also decried the freeze as a political motivated assault that wounds working families and blunts American competitiveness. “Choking off these projects out of vexation will harm the economy,” they stated.

In Chicago, USDOT also put the CTA Red Line Extension and Red and Purple Modernization projects in consideration for review. These projects together amount to over $2 billion in future federal investment towards upholding commuter rail and extending service to under-served communities.

Local officials warn the freeze could delay construction schedules, raise costs, and threaten thousands of jobs. Contractors now face uncertainty as federal reimbursements remain suspended.

Experts contend that extended interruptions in funding will stall national infrastructure ambitions and destroy confidence between the federal and state authorities. Thus, industry organizations call on USDOT to speed up its approval as soon as Congress replenishes the funds.

Source: www.progressiverailroading.com

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USDOT suspended rail funding why?

USDOT suspended funding to review whether race- or gender-based contracts in these projects violate civil rights or federal law.

How much was frozen by USDOT?

The department froze almost $2,1 billion in combined total of federal grants and loans for New York and Chicago projects.

When will USDOT fund again?

Funding can continue after Congress passes a federal budget and USDOT reviews and clears it through its administrative process.