Donald Trump pauses USD 2.1B for Chicago infrastructure projects, leveraging shutdown to pressure Democrats

White House budget director Russ Vought said the Trump administration will withhold USD 2.1 billion for Chicago infrastructure projects, expanding funding fights that have targeted Democratic areas during the government shutdown.

The pause affects a long-awaited plan to extend the city's Red Line train. Vought wrote on social media Friday that the money was "put on hold to ensure funding is not flowing via race-based contracting."

Vought made a similar announcement earlier this week involving New York, where he said USD 18 billion for infrastructure would be paused, including funding for a new rail tunnel under the Hudson River.


Losing the money would be a significant setback for Chicago's transportation plans. The Red Line extension is slated to add four train stops on the city's South Side, improving access for disadvantaged communities.

In addition, a broader modernisation project for the Red and Purple lines, which Vought said was also being targeted, is intended to upgrade stations and remove a bottleneck where different lines intersect.

In New York's case, Trump's Transportation Department said it had been reviewing whether any "unconstitutional practices" were occurring in the two massive infrastructure projects, but that the government shutdown, which began Wednesday, had forced it to furlough the staffers conducting the review.

The suspension of funds is likely meant to target Senate Democratic leader Chuck Schumer of New York, whom the White House is blaming for the impasse. He said the funding freeze would harm commuters.

"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.