Russ Vought, Director of the US Office of Management and Budget (OMB), speaks at the National Conservative Convention in Washington D.C., Sept. 3, 2025.
Dominic Gwinn | Afp | Getty ImagesThe Trump administration on Friday froze $2.1 billion in Department of Transportation funding for two jects to imve Chicago's transit system.The DOT in a statement blamed Congress' two Democratic leaders — Sen.
Chuck Schumer and Rep.
Hakeem Jeffries — for the federal government shutdown, which the department claimed would slow a review of the Chicago jects to ensure they do not involve "unconstitutional practices" related to the race or gender of construction workers.That statement echoed a Trump administration talking point that Democrats in Congress are refusing to vote for a short-term funding agreement that would reopen the government because they insist on viding health-care benefits for "illegal immigrants."Democrats call that claim a lie designed to distract from their goal of continuing the offer of enhanced Affordable Care Act health insurance plan subsidies to more than 20 million Americans.Office of Management and Budget Director Russell Vought first announced the freeze on the Chicago jects on Friday morning.
It was the third time in recent days that he revealed funding actions by the Trump administration targeting cities and states led by Democrats.President Donald Trump and Republican lawmakers have blamed Democrats in Congress for the shutdown, which hit its third day on Friday.Trump said on Thursday that the shutdown had given him an "unprecedented opportunity" to cut what he called "Democrat Agencies."Vought on Wednesday revealed that the Department of Transportation was freezing $18 billion in federal funding for two major infrastructure jects in New York City.
Both Schumer and Jeffries are from New York City.Later that same day, Vought said that the Department of Energy had cancelled nearly $8 billion in funding for climate-related jects and other efforts in 16 states, all of which were won by Democratic presidential nominee Kamala Harris in the 2024 election.On Friday, Vought, in a post on X, wrote, "$2.1 billion in Chicago infrastructure jects -- specifically the Red Line Extension and the Red and Purple Modernization ject -- have been put on hold to ensure funding is not flowing via race-based contracting."A rider heads toward the stairs to board a Red Line train at the CTA Grand station on Dec.
19, 2023, in Chicago.Eileen T.
Meslar | Chicago Tribune | Tribune News Service | Getty ImagesBoth jects are overseen by the Chicago Transit Authority, which operates the city's train and bus system.The Red Line Extension ject will extend that train line by 5.5 miles with four new stations between the existing terminal at 95th/Dan Ryan to 130th Street.
The Red and Purple Modernization ject is reconstructing infrastructure along those color train lines.The U.S.
DOT later Friday said, "This week, USDOT issued an interim final rule (IFR) barring race- and sex-based contracting requirements from federal grants.""To continue implementation of this rule, USDOT today sent letters to the Chicago Transit Authority (CTA) to inform them that" the two CTA jects "are also under administrative review to determine whether any unconstitutional practices are occurring," the DOT said.The DOT in its statement said the freeze on the Chicago money "is in addition to reviews of New York's Second Avenue Subway and Hudson Tunnel jects," the department said.
"Illinois, New York, is well known to mote race- and sex-based contracting and other racial preferences as a public policy."The DOT also said that Americans "don't care what race or gender construction workers, pipefitters, or electricians are.
They just want these massive jects finally built quickly and efficiently.""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," the department said."We urge Democrats in Congress to stop holding the federal government's budget hostage so USDOT can get back to the important work of the American people," the DOT said."Benefits for illegal immigrants are not worth potential impacts to important investments in our nation's transportation infrastructure," the department said.CNBC has requested on the DOT announcement from Illinois Gov.
JB Pritzker, who, Chicago Mayor Brandon Johnson, is a Democrat. President Trump has repeatedly singled out Chicago's leadership and Pritzker for criticism.