White House Budget Director Russell Vought announced the withholding of more than $2 billion for transportation projects in Chicago, the latest move by the Trump administration to use the shutdown as leverage to shrink the federal government.
Vought said in a post on X early Friday that “$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.”
President Donald Trump has threatened to use the government shutdown to fire thousands of federal workers and cut programs that he says Democrats like. The Chicago announcement comes as the shutdown enters its third day with Democrats and Republicans in a standoff over renewing federal funding.
Spokespeople for the Chicago Transit Authority, Illinois Governor JB Pritzker and Chicago Mayor Brandon Johnson didn’t immediately reply to requests for comment.
Since the shutdown began earlier this week, Vought has already suspended $18 billion in New York infrastructure funding and $8 billion for clean energy projects in Democratic states.
“These critical reviews are intended to ensure no additional federal dollars go towards discriminatory, illegal and wasteful contracting practices,” the US Transportation Department said in a statement about the New York and Chicago projects.
Chicago has become a focal point for Trump, who has repeatedly threatened to send National Guard troops to crack down on what he has cast as out-of-control crime and violence in the Democratic stronghold.
The city’s Red Line Extension, which will add four new stations and extend service 5.6 miles south of 95th Street, secured a $1.97 billion grant from the Federal Transit Administration in January 2025 and is slated to finish construction in 2031.
The Red and Purple Modernization initiative includes building a new bypass structure, rebuilding several stations and installing a modern signal system.
The White House is also looking to fire “thousands” of federal workers. Vought and Trump met on Thursday to discuss federal job cuts. An announcement on their plans could come as soon as Friday.
“If they keep the government closed it will get more and more painful,” House Speaker Mike Johnson told reporters on Thursday. The White House is “going to look to the administration’s priorities and make sure they are funded.”
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