Federal funding pause puts CTA Red Line extension in jeopardy
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The Chicago Red Line station. Photo: Carrie Shepherd/Axios
The U.S. Department of Transportation delivered a blow to the CTA Friday when it announced it was freezing $2.1 billion in funding for the agency.
Why it matters: That decision puts the long-awaited completion of the CTA's Red Line Extension in jeopardy, as well as continued work on the Red and Purple Modernization Project.
Driving the news: DOT informed the CTA that remaining funding for both projects is under administrative review "to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices."
- The review comes after USDOT issued an interim final rule barring race- and sex-based contracting requirements from federal grants based on a program that's meant to ensure minority-owned businesses are considered for capital projects.
Catch up quick: Right before he left office in January, former President Biden awarded CTA nearly $2 billion for the Red Line Extension.
- The project would extend the Red Line 5.5 miles and add four stops, providing better public transit access to the city's predominantly Black South Side.
- CTA priced the RLE at $5.7 billion and Red-Purple Modernization on the North Side at $2.1 billion.
What they're saying: "The administration is concerned that the Biden administration was handing out taxpayer dollars to pay for this construction based on DEI," White House press secretary Karoline Leavitt said. "DOT is reviewing the race based contracting on unconstitutional grounds, and in the meantime, the Department of Transportation funds for these projects are on hold."
Between the lines: The Trump administration is also blaming the government shutdown and "radical Democrats" as the reason for the funding pause.
- "Without a budget, the Department has been forced to furlough the civil rights staff responsible for conducting this review," DOT said in a statement.
The other side: "We are calling for these cuts to be immediately reversed, and we will use every tool at our disposal to restore this funding," Mayor Brandon Johnson said in a statement. "Chicagoans have waited far too long to turn back now. We will fight to ensure that the Red Line Extension and the Red and Purple Modernization Project move forward."
- "The Chicago Transit Authority is in receipt of the letters from the Federal Transit Administration, which we are currently reviewing," CTA said in a statement.
Zoom out: The funding pause came on the same day the Regional Transit Authority announced that the 2026 budget shortfall facing CTA, Metra and Pace is about $200 million, down from $771 million.
- The new 2026 budget scenario includes a 10% fare increase.
- RTA has been pleading with the state legislature to kick in funds in order to avoid what it says would be a 40% service cut.
What's next: The state legislature may take up transit funding when lawmakers return to Springfield on Oct. 14.