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Feds freeze Chicago transit funds over diversity rules

Today, 10/10/2025, 16:12

The DOT blocked Chicago’s Red Line expansion over diversity hiring rules, though Illinois maintains $400 million in state funding.

The federal government has frozen funding for two major Chicago Transit Authority projects, the Red Line Extension and Red and Purple Modernization, after eliminating race- and sex-based contracting requirements from federal grants, Construction Dive reports.

The DOT is reviewing both projects for potential violations.

“The American people don’t care what race or gender construction workers are,” the DOT stated.

“They just want these massive projects finally built quickly and efficiently.”

The move mirrors similar action in New York, where over $18 billion for transit projects was blocked.

Despite the federal freeze, Illinois Governor J.B. Pritzker said $400 million in state funding remains available, with $5.5 billion already allocated in the current budget. The state’s Rebuild Illinois program encompasses $50.6 billion in total transportation investments.