Tipsheet

Another Blue City Just Got Some Bad News From OMB Director Vought

Leah Barkoukis
Leah Barkoukis  |  October 03, 2025 9:35 AM

Office of Management and Budget Director Russ Vought announced Friday morning the Trump administration is freezing $2.1 billion for Chicago infrastructure projects.

Posting on X, Vought said 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." 

Reposting Vought, the Department of Transportation published a statement indicating the agency issued an interim final rule 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 two projects — the CTA Red Line Extension and the CTA Red and Purple Modernization Program – are also under administrative review to determine whether any unconstitutional practices are occurring. The remaining federal funding for both projects total $2.1 billion. 

This is in addition to reviews of New York’s Second Avenue Subway and Hudson Tunnel projects. 

Illinois, like New York, is well known to promote race- and sex-based contracting and other racial preferences as a public policy. [...]

Together, these critical reviews are intended to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices. (Department of Transportation)

DOT said the American people value speed and efficiency over the race and gender of those working on the projects. 

"Secretary Duffy and USDOT are committed to conducting these reviews as fast as possible so reimbursements can move forward," the agency said. "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. 

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"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," DOT continued. "Benefits for illegal immigrants are not worth potential impacts to important investments in our nation’s transportation infrastructure."

Earlier this week, Vought took aim at other Democratic initiatives by freezing $18 billion in federal infrastructure funding for New York and $8 billion in Energy Department funding designated for climate projects.