The Trump administration has put $2.1 billion in Chicago infrastructure projects on hold over concerns about “race-based contracting.”
The funding freeze, first announced Friday morning by Office of Management and Budget Director Russ Vought, affects two of the city’s largest infrastructure projects — the Red Line Extension and the Red and Purple Modernization program. The administration accused Illinois of promoting race and sex-based contracting and other racial preferences as public policy.
“This week, USDOT issued an interim final rule (IFR) barring race- and sex-based contracting requirements from federal grants,” the Department of Transportation (DOT) said in a statement Friday morning.
“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 statement continued. (RELATED: DOJ Probing Chicago Over Potentially Discriminatory Hiring Practices)
$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. More info to come soon from @USDOT.
— Russ Vought (@russvought) October 3, 2025
The DOT cited a 2023 announcement by the CTA that it had hired its first-ever chief equity and engagement officer as part of an effort to make “diversity, equity, and inclusion the linchpins in every decision.” The announcement also stated the CTA has advanced contracting policies to “reduce the racial gap in contracting by creating and facilitating more prime, joint venture and equity contracting opportunities for historically under-utilized businesses.”
The latest funding halt follows a similar move earlier this week, when the Trump administration froze $18 billion in New York City infrastructure projects “to ensure funding is not flowing based on unconstitutional DEI principles.”
“Together, these critical reviews are intended to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices,” the DOT said. “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.”
The CTA did not respond to the Daily Caller News Foundation’s request for comment.
On Wednesday, the Department of Energy also announced that it would terminate approximately $7.56 billion in funding for 223 energy projects — nearly 30% of which were awarded after Election Day but before President Donald Trump returned to the Oval Office.
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