Trump Administration Freezes Billions in Infrastructure Funding, Hitting Chicago and New York

Sat Oct 11 2025 06:04:09 GMT+0300 (Eastern European Summer Time)

In a major shift, the Trump administration has put a hold on $2.1 billion earmarked for infrastructure projects in Chicago while also postponing $18 billion for New York, impacting critical transportation upgrades.

The Trump administration has decided to withhold $2.1 billion in funding for Chicago's infrastructure projects, including a significant extension of the Red Line train. This action follows a similar freeze of $18 billion for New York infrastructure, emphasizing the administration's strategy to target funding in Democratic areas amid ongoing governmental operations' disputes. Transportation officials cited concerns over race-based contracting as a reason behind the pause, leading to widespread criticism about the potential setbacks these freezes may create for local communities and economies.

WASHINGTON (AP) – In a significant move, the administration of President Donald Trump has started with withholding $2.1 billion in funding for infrastructure projects in Chicago, according to the White House budget director. This decision underscores broader funding disputes that have primarily affected Democratic regions amid the ongoing government shutdown.

The funds were intended for the long-anticipated extension of the city’s Red Line train, a vital improvement for transportation access in disadvantaged neighborhoods. Budget Director Russ Vought announced on social media that funding was paused to prevent financial flows linked to ‘race-based contracting’ practices.

Earlier this week, Vought made a similar declaration regarding New York, where $18 billion intended for crucial infrastructure projects—including a new rail tunnel beneath the Hudson River—has been frozen.

Trump has publicly endorsed these funding pauses, highlighting his administration's focus on scrutinizing funding practices. He even shared a video depicting himself as a grim reaper, indicating his hardline approach to budget allocations.

Chicago's transportation projects, particularly the Red Line extension, are expected to add four new train stops on the South Side, thereby enhancing transit access for communities that traditionally lack adequate public transport. The broader modernization plans for the Red and Purple lines were also mentioned as being targeted for funding suspension.

In New York, the administration claimed it was investigating potential unconstitutional practices associated with the two massive infrastructure projects, but the government shutdown had effectively halted those reviews, leading to job concerns among workers.

Current targets, including the Hudson River tunnel project and the Second Avenue subway line extension, are seen as politically charged decisions by the White House, particularly aimed at Senate Democratic leader Chuck Schumer, who has criticized the funding freeze. Schumer expressed that delaying such projects is both ‘stupid and counterproductive,’ jeopardizing essential job creation and economic stability.

As discussions surrounding funding continue amidst the government shutdown, the impact of these financial freezes on urban infrastructure and community access remains a topic of significant concern.