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Chicago Sues Trump Govt Over $2B Transit Funds Halt

Chicago Sues Trump Govt Over $2B Transit Funds Halt

Post by : Bianca Haleem

The Chicago Transit Authority (CTA) has filed a federal lawsuit against the U.S. Department of Transportation, seeking the restoration of nearly $2 billion in funding for major commuter rail projects.

The case was filed in a U.S. District Court in Chicago. CTA officials claim that the decision by the administration of Donald Trump to stop the funds was unfair and unlawful. According to the lawsuit, the funding was halted to enforce new restrictions on race- and gender-based contracting policies.

The Transportation Department has defended its decision, stating that it aims to stop what it calls “discriminatory” and “illegal” contracting practices.

The funding cut has directly impacted key projects in Chicago. One major project is the 5.3-mile extension of the Red Line, which is expected to serve around 100,000 residents, mainly in underserved Black communities. The funds were also being used to upgrade older rail lines and build four new accessible stations on the North Side.

CTA officials say the delay is harming progress and could slow down development in these communities. Acting President Nora Leerhsen said the agency is committed to completing these projects and ensuring better public transportation and economic growth.

The lawsuit also highlights that the new federal rule, introduced in September, was applied only to grants in Chicago and New York, even though similar projects across the country followed the same earlier rules.

The funding was officially paused on October 3, 2025. CTA submitted all required documents soon after, but claims there has been no response from the federal department since December, despite further requests for information.

Recently, New York City authorities also filed a similar lawsuit seeking the release of $60 million in transit funding.

CTA argues that the federal government’s actions are unjustified and has asked the court to restore the funding so that critical transit projects can move forward without further delay.

March 21, 2026 3:09 p.m. 545
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