OAN Staff Blake Wolf
11:36 AM – Friday, October 3, 2025
The Trump administration announced that it is freezing $2.1 billion in Chicago infrastructure projects to ensure the “funding is not flowing via race-based contracting,” amidst the government shutdown.
Office of Management and Budget (OMB) Director Russ Vought announced the move in a Friday X post, writing: “$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.”
The funding freeze impacts the city’s plan to extend the Red Line train, which would have added four train stops on the city’s South Side.
The U.S. Department of Transportation (USDOT) issued a Friday statement, explaining that it “issued an interim final rule (IFR) barring race- and sex-based contracting requirements from federal grants.”
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“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 remaining federal funding for both projects total $2.1 billion,” the statement read.
The statement also referenced additional suspension of funds in New York for the Hudson River tunnel project, as well as a Second Avenue subway line, which amounted to a freeze of roughly $18 billion.
“Illinois, like New York, is well known to promote race- and sex-based contracting and other racial preferences as a public policy,” the statement continued. “Together, these critical reviews are intended to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices.”
“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.”
Additionally, the statement places blame on New York Senator Chuck Schumer (D-N.Y.) and New York Congressman Hakeem Jeffries (D-N.Y.) for the current government shutdown, which prevents the USDOT from carrying out the review.
“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. We urge Democrats in Congress to stop holding the federal government’s budget hostage to USDOT can get back to the important work of the American people. Benefits for illegal immigrants are not worth potential impacts to important investments in our nation’s transportation infrastructure,” the statement concluded.
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