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Chicago Transit Authority lawsuit targets federal construction funding halted last fall

The lawsuit challenges the freeze as retaliatory and unlawful, threatening to halt progress on a $2 billion transit expansion impacting thousands of Chicago residents.

  • On Friday, the Chicago Transit Authority sued the Trump administration in federal court seeking to restore $3.1 billion in frozen rail funding, alleging the White House suspension constitutes "political retaliation" against the city.
  • Last October, the Trump administration paused the grants, alleging the funding was tied to race-based contracting requirements and claiming the freeze was intended to "ensure funding is not flowing via race-based contracting."
  • Without federal reimbursement, the CTA warns it may be forced to demobilize work on the Red Line Extension, while the lawsuit argues the administration acted "without any lawful justification" when halting the funds.
  • The Transportation Department defended its stance, stating it intends to fight "discriminatory, illegal, and wasteful contracting practices" and should not support projects using race- or gender-based contracting preferences.
  • Absent judicial relief by March 27, the CTA faces a potential shutdown of construction work, though CTA Acting President Nora Leerhsen said the agency "will take every step necessary to ensure" the infrastructure projects proceed.
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Chicago Transit Authority lawsuit targets federal construction funding halted last fall

The Chicago Transit Authority has filed a federal lawsuit seeking the restoration of $2 billion in commuter rail expansion funding that President Donald Trump’s administration stopped last fall.

·United States
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The Washington Post broke the news in on Friday, March 20, 2026.
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