The Trump administration has frozen $2.1 billion in federal funding for Chicago subway improvements as the government shutdown enters its third day.
This action targets the Chicago Transit Authority's Red Line Extension and Red and Purple Modernization Project.
White House budget director Russ Vought announced the pause on social media to ensure funding does not flow via race-based contracting.
The Transportation Department is scrutinizing the projects to prevent discriminatory practices linked to the Disadvantaged Business Enterprise program.
Illinois Governor J.B. Pritzker described the move as holding bipartisan funding hostage, harming the economy and people reliant on public transit.
The Chicago Transit Authority promotes its DBE program to support small businesses owned by socially and economically disadvantaged individuals.
This freeze follows a similar halt of $18 billion for New York rail projects, including the Gateway Program and Second Avenue Subway.
The administration has now paused at least $28 billion in funding for Democratic cities and states.
Pressure Tactics and Broader Impacts
President Trump is using the shutdown to target political rivals, including Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.
The standoff has frozen $1.7 trillion in agency operations, suspending scientific research, financial regulation, and other activities.
Pay is withheld for about 2 million federal workers, though essential personnel continue duties without compensation.
The government delayed its monthly unemployment report, affecting economic insights.
A prolonged shutdown risks disrupting air travel, food aid, and court operations, with federal workers facing missed paychecks by mid-October.
House Speaker Mike Johnson acknowledged Trump's pressure campaign, stating he applauds efforts to reopen the government.
No swift resolution appears likely, with Senate votes on competing plans expected but unlikely to pass.
Democrats demand inclusion of expiring healthcare subsidies in any funding package, while Republicans prefer separate handling.
Republicans control Congress but require Democratic support in the Senate.
Bipartisan compromise talks continue, though trust issues persist over honoring agreements.