--- title: Trump Administration Halts $2.1 billion in Chicago Projects description: According to OMB director Russell Vought, the projects “have been put on hold to ensure funding is not flowing via race-based contracting.” canonical: https://time.com/7322946/trump-administration-funding-cuts-democratic-cities-government-shutdown/ author: Solcyré Burga article:opinion: false article:content_tier: free article:published_time: 2025-10-03T15:24:52.000Z article:modified_time: 2026-03-11T00:22:03.205Z article:section: Politics og:title: Trump Administration Halts $2.1 billion in Chicago Projects og:description: The projects “have been put on hold to ensure funding is not flowing via race-based contracting.” og:url: https://time.com/7322946/trump-administration-funding-cuts-democratic-cities-government-shutdown/ og:site_name: TIME og:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt25fc8f6091cba46c/6998ca60a97fc0a35ba74be9/GettyImages-1888738669.jpg?branch=production&width=2400&quality=75&auto=webp&crop=16:9 og:image:width: 1200 og:image:height: 675 og:image:alt: US-NEWS-CHICAGO-TRAINS-VIOLENCE-4-TB og:type: article twitter:card: summary_large_image twitter:title: Trump Administration Halts $2.1 billion in Chicago Projects twitter:description: The projects “have been put on hold to ensure funding is not flowing via race-based contracting.” twitter:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt25fc8f6091cba46c/6998ca60a97fc0a35ba74be9/GettyImages-1888738669.jpg?branch=production&width=2400&quality=75&auto=webp&crop=16:9 ---  # Trump Administration Halts $2.1 billion in Chicago Infrastructure Projects Amid Government Shutdown  by [Solcyré Burga](/author/solcyre-burga/)  ## Solcyré Burga Reporter Oct 3, 2025 3:24 PM CUT  A rider heads toward the stairs to board a Red Line train at the CTA Grand station on Dec. 19, 2023, in Chicago. A rider heads toward the stairs to board a Red Line train at the CTA Grand station on Dec. 19, 2023, in Chicago.Eileen T. Meslar/Chicago Tribune—Getty Images  by [Solcyré Burga](/author/solcyre-burga/)  ## Solcyré Burga Reporter Oct 3, 2025 3:24 PM CUT The Trump Administration has paused infrastructure projects in Chicago worth $2.1 billion, Office of Management and Budget (OMB) director Russell Vought [announced](https://x.com/russvought/status/1974074373251477524?ref%5Fsrc=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet "undefined") on Friday morning. According to Vought, the projects “have been put on hold to ensure funding is not flowing via race-based contracting.” He called out the Red Line Extension and the Red and Purple Modernization Project as ones that have been especially hit hard. A statement from the U.S. Department of Transportation (DOT) cited an [interim final rule](https://www.transportation.gov/mission/civil-rights/disadvantaged-business-enterprise/dbe-ifr-9-30-2025 "undefined") that was issued last week banning race-and-sex based contracting from federal grants. The funding block falls on the third day of the government shutdown, as President Donald Trump and his Administration embark on a pressure campaign against Democratic-led states and cities. Republicans and Democrats are locked in a stalemate over spending and health care. Democrats are demanding a reversal of the [Medicaid cuts in Trump’s “Big, Beautiful Bill.”](https://time.com/7298772/medicaid-big-beautiful-bill-health-insurance/ "undefined") They are also fighting to extend tax credits for the Affordable Care Act, commonly known as “Obamacare,” which are set to expire at the end of the year. A [blame game](https://time.com/7322235/government-shutdown-republican-democrat-lawmakers-react-blame-game/ "undefined") has since ensued, with the political parties each holding the other responsible for the shutdown. **Read More**:[_Trump Touts Meeting With Vought to Discuss Cuts to ‘Democrat Agencies’ as Shutdown Impasse Continues_](https://time.com/7322628/donald-trump-shutdown-vought-project-2025/ "undefined") As the Trump Administration vows to issue layoffs and cuts during the closure, with Democrats falling especially vulnerable, Vought announced earlier this week that a billion-dollar climate project in New York City is being paused to ensure “unconstitutional DEI principles” are not at play. “Illinois, like New York, is well known to promote race-and-sex-based contracting and other racial preferences as a public policy,” the DOT said in a [statement](https://www.transportation.gov/briefing-room/us-department-transportation-statement-review-chicagos-discriminatory "undefined"), pointing to the Chicago Transportation Authority’s “Disadvantaged Business Enterprise” program—a DOT governed initiative that “ensures nondiscrimination” in the awarding of contracts. The Energy Department on Wednesday also outlined plans to cut $8 billion in energy projects across 16 states–all of which Vice President Kamala Harris won in the 2024 presidential election. “Secretary Duffy and USDOT are committed to conducting these reviews as fast as possible,” the DOT said “Unfortunately, \[Senate Minority Leader\] Chuck Schumer and \[House Minority Leader\] Hakeem Jeffries’ decision to shut down the government has negatively affected the Department’s staffing resources for carrying out this important analysis.” Trump [met with](https://time.com/7322628/donald-trump-shutdown-vought-project-2025/ "undefined") Vought on Thursday to discuss looming federal job cuts. The Administration has not yet announced how many workers will be affected, though Trump said he is considering cutting many “Democrat agencies.” ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/7322946/trump-administration-funding-cuts-democratic-cities-government-shutdown/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/7322946/trump-administration-funding-cuts-democratic-cities-government-shutdown/"},"headline":"Trump Administration Halts $2.1 billion in Chicago Infrastructure Projects Amid Government Shutdown","datePublished":"2025-10-03T15:24:52.000Z","dateModified":"2026-03-11T00:22:03.205Z","description":"According to OMB director Russell Vought, the projects “have been put on hold to ensure funding is not flowing via race-based contracting.”","url":"https://time.com/7322946/trump-administration-funding-cuts-democratic-cities-government-shutdown/","keywords":["Trump Administration","News Desk"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt25fc8f6091cba46c/6998ca60a97fc0a35ba74be9/GettyImages-1888738669.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Solcyré Burga","jobTitle":"Reporter","url":"https://time.com/author/solcyre-burga/"}],"articleSection":"Politics","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt25fc8f6091cba46c/6998ca60a97fc0a35ba74be9/GettyImages-1888738669.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"US-NEWS-CHICAGO-TRAINS-VIOLENCE-4-TB","caption":"US-NEWS-CHICAGO-TRAINS-VIOLENCE-4-TB","creditText":"Eileen T. 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