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Home»Bonds»Trump pauses $2.1 billion of federal funds for Chicago transit
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Trump pauses $2.1 billion of federal funds for Chicago transit

EditorialBy EditorialOctober 3, 2025No Comments4 Mins Read
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Trump pauses .1 billion of federal funds for Chicago transit
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The $5.75 billion Pink Line enlargement mission provides 5.5 miles of elevated line and 4 new stations on Chicago’s South Aspect.

Chicago Transit Authority

The Trump administration Friday introduced it has paused $2.1 billion of federal funds for the Chicago Transit Authority in its newest freeze on infrastructure {dollars} throughout the nation.

The pause comes because the U.S. Division of Transportation on Friday issued a revamped ultimate rule that bars race- and sex-based contracting necessities from federal grants. As a part of the rule’s implementation, the DOT despatched a letter to the CTA saying its two largest tasks, the Pink Line Extension and the CTA Pink and Purple Modernization Program, are “underneath administrative assessment to find out whether or not any unconstitutional practices are occurring.”

The transfer follows this week’s freeze on $18 billion of federal {dollars} for 2 high-profile New York Metropolis tasks, the 2nd Avenue Subway extension and the Hudson Tunnels mission, and $8 billion for numerous clear vitality tasks in Democratic states.

Since taking workplace, the Trump administration has sought to place its personal stamp on infrastructure funding partially by unwinding the Biden administration’s emphasis on variety, fairness and inclusion. Amongst different standards, the DOT has tied transportation funds to tasks situated in areas with excessive delivery and marriage charges and to areas that adjust to federal immigration legal guidelines.

Chicago’s funds have been “placed on maintain to make sure funding is just not flowing through race-based contracting,” Workplace of Administration and Funds Director Russell Vought mentioned Friday in a publish on X. The funding pause comes amid a authorities shutdown that Trump and Vought have mentioned would permit give them extra leverage over federal funds and workers.

“Illinois, like New York, is well-known to promote race- and sex-based contracting and different racial preferences as a public coverage,” the DOT mentioned in a press release. The company mentioned the CTA has allotted 21% of its spending on the Pink-Purple Modernization mission to DBE corporations. “Collectively, these important critiques are meant to make sure no extra federal {dollars} go in direction of discriminatory, unlawful, and wasteful contracting practices,” the company mentioned.

The most important mission in CTA historical past, the 5.6-mile Pink Line Extension would transfer the elevated line’s South Aspect terminus from ninety fifth Avenue to one hundred and thirtieth Avenue. The $5.75 billion price ticket contains $2 billion of federal funds, overlaying 34% of prices, that the Biden administration awarded in late 2024 from the Federal Transit Administration’s capital funding grants program. The FTA inked a full funding grant settlement in early 2025 simply earlier than President Trump took workplace.

Development is about to start in 2026. The town in 2022 arrange a particular transit tax-increment financing district to generate at the very least $1 billion for the mission, which then carried a $3.6 billion price ticket. The CTA is anticipated to challenge bonds to finance its portion, which is now projected to price $1 billion per mile.

The CTA additionally gained $499.2 million in Federal Transit Administration discretionary grants and $165.5 million of FTA Main Capital Funding Grant funds for the Pink Purple Modernization mission, which renovates present stations on the town’s North Aspect.

The Pink Line extension web site notes that “CTA has required workforce participation objectives on main development tasks to create a path for underrepresented and residents of economically deprived areas to profession alternatives within the constructing trades, union apprenticeships and different construction-related jobs.”

The CTA didn’t reply to a request for remark by press time. In a press release, Chicago Mayor Brandon Johnson known as for the cuts “to be instantly reversed. Chicagoans have waited far too lengthy to show again now. We are going to struggle to make sure that the Pink Line Extension and the Pink and Purple Modernization Venture transfer ahead.” 

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