White House withholds $2.1B for Chicago Red Line extension amid broader shutdown funding pauses
The Trump administration, through OMB Director Russ Vought, announced it would withhold $2.1 billion in federal funding for Chicago infrastructure — including the planned Red Line extension — saying the pause was to ensure funds were not flowing via race‑based contracting. The action is part of a broader shutdown posture that has placed roughly $18 billion in New York infrastructure and about $8 billion in climate/energy projects on hold, a move praised by the president and GOP leaders as trimming spending but criticized by some legal analysts as a politically driven pause rather than a permanent rescission.
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🔍 Key Facts
- The White House/OMB, led by Russ Vought, announced it will withhold $2.1 billion in federal funding for Chicago infrastructure, specifically the planned Red Line extension.
- OMB also placed roughly $18 billion in New York infrastructure funding (including subway and Hudson Tunnel projects) and about $8 billion in energy/climate projects on hold as part of broader shutdown‑related funding pauses; one immediate operational impact reported was a $300 million disbursement for the Second Avenue subway being affected.
- Russ Vought publicly framed the Chicago funding pause as intended “to ensure funding is not flowing via race‑based contracting,” and communicated the New York and other freezes via social media/official announcements as part of the administration’s shutdown posture.
- President Trump and allied Republicans portrayed the shutdown and funding pauses as an opportunity to reshape spending—Trump praised Vought and called for “clearing out dead wood” on social media/Truth Social—and House Speaker Mike Johnson endorsed Vought’s actions as following a presidential directive.
- Reporters and analysts tied the freezes to Vought’s prior policy agenda (Project 2025) to limit agency autonomy, while legal experts cautioned that threats of permanent layoffs or rescissions may be political posturing and are legally distinct from temporary funding lapses.
- The funding pauses have immediate political and practical consequences: a delayed Senate schedule (no vote until after Yom Kippur) complicates near‑term restoration of funds, and live coverage traced implementation decisions and potential impacts on the affected projects.
📍 Contextual Background
- The Trump administration announced the cancellation of nearly $8 billion in climate-related projects in 16 states: California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont and Washington.
- Fourteen of the 16 states affected by the cancellations had Democratic governors, while New Hampshire and Vermont had Republican governors.
- Chuck Schumer is the Senate Minority Leader and a United States Senator representing New York.
- Hakeem Jeffries is the House Minority Leader and a member of the United States House of Representatives representing New York.
📰 Sources (7)
Trump to withhold $2.1 billion for Chicago infrastructure projects amid shutdown battle
New information:
- The Trump administration (via OMB/White House Budget Director Russ Vought) will withhold $2.1 billion in federal funding for Chicago infrastructure projects.
- The pause specifically affects the planned extension of Chicago’s Red Line train.
- Russ Vought said on social media the funds were 'put on hold to ensure funding is not flowing via race‑based contracting.'
- This action is presented alongside an earlier, separate withholding announcement affecting New York infrastructure funding.
As the shutdown drags on, the threat of permanent cuts is mired in politics
New information:
- Direct reporting that Russell Vought 'announced' the cancellation/withholding of $8 billion in energy projects and said he would cancel $18 billion in New York infrastructure funding (strong attribution to OMB/administration)
- President Trump’s Truth Social message framing the pause as an opportunity to "clear out dead wood" and calling Democrats the 'Radical Left', quoted verbatim
- House Speaker Mike Johnson's on‑the‑record statement endorsing Vought's role and characterizing the decision as following a presidential directive
- Legal/analytical quote from Bridget Dooling (Ohio State law professor and former OMB official) calling the administration's layoffs threat a 'bluff' and distinguishing temporary lapses from permanent RIF authority
- Contextual background on Russell Vought's prior advocacy (Project 2025) linking his earlier policy prescriptions to current OMB actions
Who is Russ Vought? What to know about Trump's OMB director ahead of shutdown layoffs
New information:
- CBS ties those funding freezes explicitly to decisions being implemented and communicated by OMB Director Russ Vought as part of the administration's shutdown posture.
- Adds context that Vought has sought rescissions previously and frames the freezes as consistent with his Project 2025 agenda to limit agency autonomy.
Government shutdown live updates as impasse enters second day
New information:
- CBS live update confirms the White House move to pause $18 billion in New York infrastructure funding and $8 billion in climate-related projects.
- Reports that Senate won't vote again until Friday (observance of Yom Kippur) which affects the near-term path to restoring funding.
- Direct quote from President Trump on Truth Social framing the shutdown as a chance to 'clear out dead wood.'
Trump uses government shutdown to dole out firings and political punishment
New information:
- Direct attribution that OMB placed roughly $18 billion on hold for New York subway and Hudson Tunnel projects during the shutdown (confirmed in this AP piece)
- Contextual quote from President Trump praising OMB Director Russ Vought's ability to 'trim the budget' and framing the shutdown as an opportunity to reshape spending priorities
Trump freezes $18 billion in funding for NYC, home to key Democratic leaders
New information:
- USDOT explicitly tied its review of New York funding to the federal shutdown in its statement, per NPR reporting.
- NPR reports an immediate operational effect: a $300 million disbursement for the Second Avenue subway project will be affected immediately.
- Direct attributions and quotes included from Russell Vought (OMB post on X), Senate Minority Leader Chuck Schumer (post on X), and New York Gov. Kathy Hochul's press‑conference remarks.