USDOT Halts $2.1 Billion Chicago Transit Funding
05.10.2025
USDOT held up $2.1 billion in funding for two megaChicago Transit Authority projects, alleging violation of a regulation that prohibits race- and sex-oriented contracting in federally-funded projects.
This is reported by the railway transport news portal Railway Supply.
USDOT Freezes Billions in Transit Investment
The move impacts two flagship projects: the $1.97 billion Red Line Extension and the Red and Purple Modernization Project. Since both connect to the South Side communities, local leaders state that it defies equity and growth.
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Officials said the agency will scrutinize all contracts for federal law compliance. But the process is in limbo due to the fact that the government shutdown put staffing activity in freeze.
Mayor Brandon Johnson criticized the move as “politically motivated.” He vowed to battle for the re-instatement of funds through administration and law-related methods. “Argentina receives $20 billion,” he stated, “and the South Side receives zero. Where is the America First?”
USDOT Ruling Causes Political and Economic Backlash
Illinois Gov JB Pritzker stated that USDOT is wielding infrastructure politics like a club. He cautioned it would make the projects delay, cost jobs, and damage families who use public transport on a daily basis.
The Red Line Extension would bring 5.5 miles of fresh track and four stations south of 95th Street, linking low-income neighborhoods and the core of Chicago’s transit system. And since building began, every week that passes puts projects deeper in the hole, costing more money.
Federal agencies stated that the rule is consistent with federal anti-discrimination policies. But its critics believe it diminishes inclusion and competitive fairness for minority-owned builders who for years had been shut off from competition for government contracts.
Chicago’s transit upgrade is now at a juncture. should the federal freeze continue, city leaders would have to seek financing from other sources in order to stay ahead of schedule on projects.
Source: www.trains.com
News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:
Why did USDOT suspend Chicago transit funding?
USDOT said it halted funding to review compliance with new rules banning race- and sex-based contracting in federally supported projects.
Which projects are affected by the USDOT decision?
The freeze targets the CTA Red Line Extension and the Red and Purple Modernization Project, both critical for Chicago’s public transit expansion.
Can the city appeal the USDOT decision?
Yes. City and state officials plan legal and policy actions to challenge the suspension and push for restoration of federal funding.
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