Trump Administration Freezes $2.1 Billion for Chicago Infrastructure Amid Funding Fights

Fri Oct 10 2025 11:37:42 GMT+0300 (Eastern European Summer Time)

In a significant move, the Trump administration has announced a withholding of $2.1 billion for Chicago infrastructure projects, impacting essential transit expansions during the ongoing government shutdown.

President Trump's administration is freezing $2.1 billion earmarked for Chicago's Red Line train extension, further escalating tensions over infrastructure funding as a government shutdown continues. Budget director Russ Vought cited concerns over race-based contracting as the reason for the funding halt, which threatens to derail vital transportation plans aimed at improving access for disadvantaged communities. The funding freeze follows a similar decision affecting New York projects.

WASHINGTON (AP) — The Trump administration has announced a drastic funding decision revealing it will withhold $2.1 billion designated for Chicago infrastructure projects, as expressed by White House Budget Director Russ Vought on Friday. This action extends the ongoing funding disputes that have particularly impacted Democratic-controlled regions amidst a government shutdown.

This funding halt significantly affects the anticipated extension of Chicago’s Red Line train, a project intended to improve public transportation access in underserved communities. Vought justified the suspension by claiming it was necessary to prevent budgetary allocations from flowing through race-based contracting practices.

Earlier in the week, Vought revealed a similar funding pause for New York, where the administration has inhibited $18 billion in infrastructure spending, which includes the crucial Hudson River rail tunnel project.

Such tactics have been embraced by President Trump, who even posted a controversial video portraying himself as the grim reaper amid the standoff over spending. Losing these funds represents a severe blow to Chicago’s transportation initiatives, which aim to enhance mobility for marginalized communities through four new South Side Red Line stops.

Moreover, plans for a more extensive modernization effort of the Red and Purple lines are now at stake, aimed at upgrading stations and alleviating operational bottlenecks at transit intersections.

The suspension of funding for significant projects, including New York's Hudson River tunnel, is perceived as an effort to pressure Senate Democratic leader Chuck Schumer, who has been blamed by the White House for the funding deadlock. Schumer criticized the move as detrimental to commuters and counterproductive to economic growth, asserting that obstructing infrastructure investments deters job creation and hinders recovery efforts.

The ongoing government shutdown complicates the situation, as the Trump administration has also furloughed staff responsible for evaluating potential irregularities in these targeted infrastructure projects. As legislative negotiations falter, communities await clarity on the future of critical infrastructure programs.