Chicago Transit Authority sues over halted federal construction funds

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The Chicago Transit Authority has filed a federal lawsuit seeking the restoration of $2 billion in commuter rail expansion funding that the Trump administration stopped last fall. The lawsuit contends the administration acted arbitrarily in halting the transit construction money for the city in an effort to restrict race- and gender-based contracting, which it believes is unconstitutional.

Why it matters

The funding halt has critically affected several major transit projects in Chicago, including a 5.3-mile extension of the Red Line elevated rail system that would serve 100,000 additional residents in disadvantaged and largely Black neighborhoods. The lawsuit highlights the ongoing tensions between local transit authorities and the federal government over infrastructure funding and contracting policies.

The details

The lawsuit, filed in U.S. District Court in Chicago, names the U.S. Department of Transportation and the Federal Transportation Authority as defendants. It comes days after New York City authorities filed a similar lawsuit seeking the resumption of $60 million in federal transit funding. The CTA says it provided requested documentation a few weeks after the funding was paused on October 3, 2025, but has received no further communication from the government since then.

• The funding was halted on October 3, 2025.
• The CTA provided requested documentation a few weeks later in late October 2025.
• The CTA filed the federal lawsuit on March 21, 2026.

What’s next

The judge in the case will decide whether to allow the federal transit funding to be restored while the lawsuit proceeds.