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White House budget director Russ Vought withholds $2.1B Chicago funding

In The White House News by Newsroom October 3, 2025

White House budget director Russ Vought withholds $2.1B Chicago funding

Credit: Yahoo News

Summary

  • Russ Vought announced $2.1 billion withheld.
  • Funds targeted Chicago infrastructure projects.
  • Funding fights hit Democratic areas.
  • Action linked to government shutdown issues.

A long-awaited plan to extend the city's Red Line rail is impacted by the hiatus. The funds were "put on hold to ensure funding is not flowing via race-based contracting," Vought stated on social media on Friday.

In a similar announcement earlier this week, Vought warned that $18 billion in infrastructure spending, including money for a new rail tunnel beneath the Hudson River, will be put on hold in New York.

Trump, the president, has adopted Vought's strategies. He shared a video on Thursday night that showed him carrying a scythe and wearing a hood, portraying him as the reaper.Chicago's transportation plans would suffer a serious setback if the funds were lost. In order to improve access for underprivileged populations, the Red Line expansion is planned to add four train stops on the city's South Side.

The Red and Purple lines, which Vought said were also the focus of a larger modernization project, will also modernize stations and eliminate a bottleneck where many lines converge.

In the case of New York, Trump's Transportation Department stated that it had been investigating whether any "unconstitutional practices" were taking place in the two large infrastructure projects, but that it was compelled to furlough the staff members who were doing the study due to the government shutdown that started on Wednesday.

The White House is blaming New York Senate Democratic Leader Chuck Schumer for the standoff, and the suspension of payments is probably intended to attack him. He claimed commuters would suffer as a result of the funding freeze.

“Obstructing these projects is stupid and counterproductive because they create tens of thousands of great jobs and are essential for a strong regional and national economy,”

Schumer said on X.

What specific Chicago projects are affected by the freeze?

A proposal to expand the Red Line in Chicago south to the 130th Street station brought forward after much anticipation is heading toward completion. This will expand transit access to underserved neighborhoods. 

In addition to the large proposal, the plan will also improve stations and alleviate an existing pinch point between the Red Line and the Purple Line to improve the transit efficiency between these routes.

These transit projects have received federal funds and are involved with overall infrastructure improvements for the public transit system in Chicago, which are important projects. Delays could result in unfavorable impacts to these projects that can affect commute times and economic development of the communities.