October 3, 2025
Trump freezes $2.1B in Chicago transit funding citing "race-based contracting"
$2.1 billion transit freeze targets Democratic-run Chicago
🚇Infrastructure🏛️Government
On October 3, 2025, OMB Director Russell Vought posted that the Trump administration would put on hold $2.1 billion in federal funding for the Chicago Transit Authority's Red Line Extension and Red and Purple Modernization projects.\n\nThe Department of Transportation on Oct. 3 said it had issued an interim final rule on the Disadvantaged Business Enterprise (DBE) and Airport Concessions DBE programs and sent letters to the CTA to open administrative reviews of those two projects, which together have $2.1 billion in remaining federal disbursements.\n\nThe FTA had executed a Full Funding Grant Agreement obligating $1.9 billion for the Red Line Extension earlier in 2025.\n\nThe administration's withholding of disbursements has drawn congressional and local challenges.\n\nThe Impoundment Control Act generally prohibits unilateral presidential impoundment of funds, and Congress passed and the President signed the Rescissions Act of 2025 on July 24, 2025, which uses the ICA rescission procedures rather than creating a new unilateral power.
On Oct. 3, 2025 OMB Director 
Russell Vought announced the administration would put on hold $2.1 billion in federal disbursements for the CTA's Red Line Extension and Red and Purple Modernization projects.
The U.S. Department of Transportation published an interim final rule affecting the DBE and ACDBE programs on Sept. 30, 2025, and said it sent letters to the CTA on Oct. 3 to open administrative reviews of the two projects.
The Federal Transit Administration executed a Full Funding Grant Agreement that contractually obligated $1.9 billion for the Red Line Extension earlier in 2025.
The Rescissions Act of 2025 was signed into law on July 24, 2025, using the Impoundment Control Act's special rescission procedures. That law does not permit the President to unilaterally cancel already-obligated funds without Congress approving a rescission under the ICA process. [CRS;
Local officials, including Mayor Brandon Johnson, condemned the pause and said the city would pursue legal options and demand restoration of disbursements. The CTA and Illinois delegation said the pause threatens project schedules and jobs.
🚇Infrastructure🏛️Government
People, bills, and sources
What You Can Do
1
civic action
Contact House Transportation committee members
Ask members to hold oversight on the use of administrative reviews to withhold previously approved transit disbursements before Oct. 15 oversight hearing.
2
civic action
File a GAO complaint
Request a Government Accountability Office review of whether withholding disbursements violated the Impoundment Control Act.
3
practicing
Submit testimony to House Appropriations
Provide examples of local harm from disbursement pauses and urge protections for obligated grant agreements.