Trump administration targets $2.1B in CTA grants over DEI contracting concerns

CHICAGO (WTVO) — More than $2 billion in federal infrastructure funding awarded to the Chicago Transit Authority is under review by the Trump administration, raising concerns about the future of two major transit projects.

The U.S. Department of Transportation on Friday announced an interim final rule prohibiting race- and sex-based contracting requirements in federally funded projects. As part of the rule’s implementation, the department said it is reviewing whether the CTA’s Red Line Extension and Red and Purple Modernization Program include “unconstitutional practices.”

“To continue implementation of this rule, USDOT today sent letters to the Chicago Transit Authority to inform them that two projects… are also under administrative review,” the department said in a statement. “The remaining federal funding for both projects totals $2.1 billion.”

The department also criticized Illinois for promoting “race- and sex-based contracting and other racial preferences as a public policy,” and said the reviews are intended to prevent “discriminatory, illegal, and wasteful contracting practices.”

The funding freeze comes amid a partial federal government shutdown and a looming fiscal crisis for Illinois mass transit systems, with projected deficits ranging from $200 million to $770 million.

Chicago Mayor Brandon Johnson condemned the move, calling it politically motivated.

“This is another example of how deranged this president is and how fixated he is on removing opportunities away from Black and brown and working-class communities,” Johnson said Friday. “But for the South Side of Chicago, he is saying that our communities get nothing.”

Johnson said the city recently opened new stations on the North Side and vowed to fight to keep the funding in place.

“I’m going to fight it, and I’m going to make sure that those dollars remain in our communities,” he said.

In a separate statement, the Department of Transportation said, “The American people don’t care what race or gender construction workers, pipefitters, or electricians are. They just want these massive projects finally built quickly and efficiently.” 

According to The Center Square, Red Line Extension project, which would add four new stations and extend service to 130th Street, is considered the largest transit investment in Chicago’s Far South Side in decades. The modernization of the Red and Purple lines has already resulted in new stations and improved service on the North Side.

The CTA has not publicly responded to the review. The agency’s Disadvantaged Business Enterprise program, which sets goals for minority- and women-owned contractors, is among the policies under scrutiny.

The Trump administration’s move follows similar funding freezes in other Democratic-led cities, including New York, where $18 billion in infrastructure projects were paused earlier this week.