The Trump administration has put a hold on $2.1 billion worth of infrastructure projects in Chicago, according to Office of Management and Budget (OMB) Director Russell Vought on Friday morning.
Vought stated that the projects are being paused to ensure that funding isn’t being distributed through contracting practices based on race. He specifically mentioned the Red Line Extension and the Red and Purple Modernization Project as being significantly affected.
The U.S. Department of Transportation (DOT) issued a statement referencing a that was released the previous week, which prohibits race-and-sex-based contracting in federal grants.
This funding freeze coincides with the third day of the government shutdown, as President Donald Trump and his administration exert pressure on states and cities led by Democrats.
Republicans and Democrats are currently deadlocked over spending and healthcare. Democrats are insisting on a reversal of the and are also advocating for the extension of tax credits for the Affordable Care Act, often called “Obamacare,” which are scheduled to expire at the end of the year.
A has erupted, with each political party blaming the other for the shutdown.
As the Trump administration plans layoffs and cuts during the shutdown, potentially impacting Democrats, Vought announced earlier in the week that a billion-dollar climate project in New York City is also being paused to verify that it doesn’t involve “unconstitutional DEI principles.”
The DOT stated that Illinois, like New York, is known for promoting race-and-sex-based contracting and other racial preferences as public policy, referring to the Chicago Transportation Authority’s “Disadvantaged Business Enterprise” program—a DOT-governed initiative designed to “ensure nondiscrimination” in contract awards.
The Energy Department on Wednesday also revealed plans to cut $8 billion in energy projects across 16 states, all of which were won by Vice President Kamala Harris in the 2024 presidential election.
The DOT stated that Secretary Duffy and USDOT are committed to finishing these reviews as quickly as possible, and that unfortunately, Chuck Schumer and Hakeem Jeffries’ decision to shut down the government has negatively affected the Department’s staffing resources for carrying out this important analysis.
Trump Vought on Thursday to discuss possible federal job cuts. The administration has not yet disclosed the number of workers that will be impacted, but Trump mentioned that he is considering cutting many “Democrat agencies.”
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