Trump Halts $2.1B Chicago Transit Projects Amid Shutdown Standoff

A view of the U.S. Capitol dome, following a partial government shutdown in Washington, D.C., U.S., October 2, 2025.

President Donald Trump’s administration has frozen $2.1 billion in federal funding for major Chicago transit projects, escalating tensions as the government shutdown stretches into its third day.

The funding pause affects two critical initiatives: the Red Line Extension, which would expand service into some of Chicago’s most underserved South Side neighborhoods, and the Red and Purple Line Modernization Project, aimed at upgrading aging infrastructure.

White House budget director Russ Vought said the freeze was intended to ensure funds were not “flowing via race-based contracting.” Critics, however, argue the move is part of a broader strategy to punish Democratic-led cities during the shutdown.

Illinois Governor JB Pritzker condemned the decision, calling it “hostage-taking” that hurts working families who rely on public transit. Chicago Mayor Brandon Johnson echoed the frustration, noting that the Red Line extension has been anticipated for decades and would bring thousands of jobs and economic growth to disadvantaged communities.

The Chicago freeze follows similar actions in New York and Democratic-leaning states like California and Colorado, where billions in infrastructure and green-energy projects have also been suspended. In total, the administration has withheld at least $28 billion in funding from Democratic strongholds.

With Congress deadlocked over a funding deal, the standoff shows no signs of easing. Meanwhile, millions of federal workers remain without pay, and critical projects in cities like Chicago hang in the balance.