The Trump administration is freezing $2.1 billion in funding for Chicago infrastructure projects over accusations of “race-based contracting” as the government shutdown continues.
Office of Management and Budget Director Russ Vought announced the move Friday morning, saying that the freeze would impact construction to modernize the city’s public transit system. It comes just two days after the Department of Transportation froze $18 billion for New York City infrastructure projects over “unconstitutional” diversity, equity, and inclusion “principles.”
“$2.1 billion in Chicago infrastructure projects — specifically 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,” Vought wrote on X.
Shortly after Vought’s announcement, the Department of Transportation confirmed the freeze and suggested that Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY) were to blame for leading the Democrats’ resistance to a temporary government funding bill.
The department said that it was “committed to conducting these reviews as fast as possible so reimbursements can move forward. 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.”
“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 department added.
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It sent letters on Friday to the Chicago Transit Authority, stating that it had initiated an administrative review of two ongoing projects to modernize the city’s rail system, and added that it was concerned about preferential treatment in construction contracting based on race.
“Together, these critical reviews are intended to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices,” the department 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.”
President Donald Trump has urged Republicans to take advantage of the shutdown to cut “Democrat Agencies” and eliminate wasteful spending.
“I can’t believe the Radical Left Democrats gave me this unprecedented opportunity. They are not stupid people, so maybe this is their way of wanting to, quietly and quickly, MAKE AMERICA GREAT AGAIN!” Trump posted on Truth Social on Thursday.
The White House has tasked Vought with reviewing the federal bureaucracy amid the shutdown and identifying areas for spending cuts.
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