The Trump administration is pausing $2.1 billion in Chicago infrastructure projects to make sure that “funding is not flowing via race-based contracting,” the director of the Office of Management and Budget (OMB) announced Friday.
“$2.1 billion in Chicago infrastructure projects — specifically the Red Line Extension and the Red and Purple Modernization Project — have been put on hold to ensure funding is not flowing via race-based contracting,” Russell Vought wrote on X.
The U.S. Department of Transportation issued a statement Friday saying, “This week, USDOT issued an interim final rule(IFR) barring race- and sex-based contracting requirements from federal grants.”
“To continue implementation of this rule, USDOT today sent letters to the Chicago Transit Authority (CTA) to inform them that two projects — the CTA Red Line Extension and the CTA Red and Purple Modernization Program — are also under administrative review to determine whether any unconstitutional practices are occurring,” the department said. “The remaining federal funding for both projects total $2.1 billion.”
SHUTDOWN HALTS $18 BILLION IN FEDERAL FUNDS FOR TWO OF NYC’S BIGGEST TRANSIT PROJECTS
The CTA did not immediately respond Friday to a request for comment from FOX Business.
The development comes after the Department of Transportation said it also “issued letters to New York to inform them that their two mega projects – the 2nd Avenue Subway and Hudson Tunnel – are under administrative review to determine whether any unconstitutional practices are occurring.”
“Illinois, like New York, is well known to promote race- and sex-based contracting and other racial preferences as a public policy,” the department said Friday.
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“Together, these critical reviews are intended to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices,” it continued. “The American people don’t care what race or gender construction workers, pipefitters, or electricians are. They just want these massive projects finally built quickly and efficiently.”
“Secretary [Sean] Duffy and USDOT are committed to conducting these reviews as fast as possible so reimbursements can move forward. Unfortunately, Chuck Schumer and Hakeem Jeffries’ decision to shut down the government has negatively affected the Department’s staffing resources for carrying out this important analysis,” the Department of Transportation also said.

“We urge Democrats in Congress to stop holding the federal government’s budget hostage so USDOT can get back to the important work of the American people,” it concluded. “Benefits for illegal immigrants are not worth potential impacts to important investments in our nation’s transportation infrastructure.”
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