WASHINGTON — Chicago has joined the ranks of major US cities experiencing a halt to billions in federal infrastructure funding as the Trump administration intensifies its scrutiny of alleged DEI contracts during the ongoing government shutdown.
Office of Management and Budget Director Russ Vought announced on X, “$2.1 billion meant for Chicago’s infrastructure projects—specifically targeting the Red Line Extension and the Red and Purple Modernization Project—has been suspended to prevent funding from being allocated through race-based contracting practices.”
In response, Illinois Governor JB Pritzker stated, “While federal agents create chaos in Chicago, the Trump administration is jeopardizing bipartisan funding efforts.”
He added, “This is not about political maneuvering; it impacts our economy and the workers who depend on public transit for their daily commutes.”
Chicago Mayor Brandon Johnson criticized Vought on X, remarking, “Argentina is getting $20 billion, yet the South Side receives nothing. What happened to the concept of America First?”
This remark came following Treasury Secretary Scott Bessent’s announcement that the US would provide a multibillion-dollar swap line to President Javier Milei’s administration to bolster Argentina’s markets.
The OMB action follows a similar suspension in New York City, where $18 billion earmarked for the Second Avenue subway and Hudson Tunnel projects was frozen on Wednesday, prompting a review to determine if any funding supported illegal DEI practices.
The Transportation Department stated, “Illinois, akin to New York, has a reputation for endorsing race and gender-based contracting and preferences in public policy,” referencing a PBS report that indicated the Chicago Transit Authority allocated approximately 20% of its modernization fund to firms classified as Disadvantaged Business Enterprises (DBEs).
According to the DOT, “What the American people desire is not the race or gender of construction workers, pipefitters, or electricians, but swift and efficient completion of these large-scale projects.”
The statement continued with, “Secretary [Sean] Duffy and the USDOT are dedicated to accelerating these reviews to facilitate reimbursements. So far, the government shutdown brought on by Chuck Schumer and Hakeem Jeffries has negatively impacted the Department’s capacity to perform this essential analysis.”
On Friday, the DOT published an interim final rule that “eliminates race- and sex-based assumptions of social and economic disadvantage that contravene the U.S. Constitution” from its DBE program.
In regard to New York, it remains uncertain how exactly discriminatory practices may have impacted infrastructure contracting, though a civil rights complaint revealed last month that the Port Authority of New York and New Jersey allegedly set aside 20% of its contracts for minority-owned firms contrary to laws.
The Federal Transit Administration chief and former Congressman Marc Molinaro communicated the changes to MTA chairman Janno Lieber and Gateway Development Commission CEO Tom Prendergast on September 30.
New York Governor Kathy Hochul asserted when questioned about the funding suspension on Wednesday, “They seem to be using culture wars to justify this hold. We are ready to proceed with construction, and it appears they prioritize their own views over the actual needs of our nation.”
