Chicago Transit Authority sues over halted federal construction funding

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The Chicago Transit Authority has filed a federal lawsuit seeking restoration of $2 billion in commuter rail expansion funding that the Trump administration stopped last fall. The CTA 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 argues the administration's actions penalize the CTA for following the rules in place at the time and unfairly single out Chicago and New York for funding cuts.

The details

The federal lawsuit, filed in U.S. District Court in Chicago, names the U.S. Department of Transportation and the Federal Transportation Authority as defendants. It contends the administration's actions were 'unlawful many times over' and complains that the funding holdup penalizes the CTA for following the rules in place at the time. The Transportation Department has responded that it is trying to choke off a 'discriminatory' and 'illegal' contracting process, stating 'The American people don't care what race or gender construction workers, pipefitters, or electricians are. They just want these important projects built quickly and efficiently.'

• The funding was paused on Oct. 3, 2025.
• The CTA provided requested documentation a few weeks later.
• The Transportation Department requested additional records in December, and since the CTA responded, there has been no further communication.

What’s next

The judge in the case will decide whether to allow the CTA's lawsuit to proceed and potentially restore the $2 billion in halted federal funding for the transit projects.