Americas

Trump freezes $2.1B in Chicago rail funds amid federal shutdown fight

Billions in funding withheld from states led by Democrats, whom Trump administration blames for ongoing government shutdown

Darren Lyn  | 03.10.2025 - Update : 03.10.2025
Trump freezes $2.1B in Chicago rail funds amid federal shutdown fight

HOUSTON, United States 

The Trump administration announced Friday that it was freezing $2.1 billion in infrastructure funding for the city of Chicago in the US state of Illinois, according to media reports.

The move comes in the wake of the federal government shutdown on Wednesday, with President Donald Trump targeting Democratic states to withhold federal funding in what appears to be a strategy for Republicans to compel Democrats to come to the table to reopen government offices.

"$2.1 billion in Chicago infrastructure projects—specifically the Red Line Extension and the Red and Purple Modernization Project—have been put on hold to ensure funding is not flowing via race-based contracting," Office of Management and Budget (OMB) Director Russ Vought posted on the US social media company X.

Those projects would add four train stops on Chicago's South Side, bringing much-needed public transportation to the city's poorest and most isolated neighborhoods.

The Department of Transportation doubled down on the decision, saying the funds were being frozen to allow for a review "to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices," keeping in line with Trump's initiative to move away from federal Diversity, Equity, and Inclusion (DEI) policies.

"I just don't understand the Trump administration, bringing harm like that," Roger Jones, the director of a violence prevention youth center in Chicago, said in an interview. "It's devastating when people are expecting something good coming and it does not come."

Illinois is not the only blue state to facing funding cuts from the Trump administration, which has blamed Democrats for the ongoing government shutdown, now in its third day.

The OMB also announced a series of project funding cancellations and pauses since Wednesday, including freezing nearly $18 billion meant for infrastructure projects in New York City, with the majority of funding allocated for the Hudson Tunnel project, which helps connect subway transportation from the states of New York to New Jersey.

"Obstructing these projects is stupid and counterproductive because they create tens of thousands of great jobs and are essential for a strong regional and national economy," Senate Democratic minority leader Chuck Schumer posted on X.

The Trump administration also announced that it was canceling $7.5 billion in Biden-era funding for hundreds of energy projects. All of the states targeted in the cancellation of those funds were won by former Vice President Kamala Harris during the 2024 presidential election.

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