White House Pauses $2.1B in Chicago Transit Funding Citing DEI Concerns, Press Secretary Confirms

🔍 Key Facts

The White House paused $2.1 billion in Department of Transportation funding for Chicago transit projects, specifically the Red Line extension and the Red & Purple modernization projects.
White House press secretary Karoline Leavitt confirmed the pause and explicitly told reporters it was motivated by concerns about “race‑based contracting” or DEI.
Leavitt said the funding hold is tied to a broader Office of Management and Budget (OMB)/White House review process.
The review process involves OMB official Russell Vought.
Russell Vought is scheduled to meet with the president to recommend agency cuts or layoffs as part of that process.
Fox News reported these details during a White House briefing on October 3, 2025.

Russell Vought served as the Director (chief) of the Office of Management and Budget (OMB).
OMB is the abbreviation for the Office of Management and Budget, an office within the executive branch of the United States federal government responsible for assisting the President in preparing the federal budget and supervising its administration in executive agencies.

Social media users on X often point out that DEI requirements have historically delayed infrastructure projects, such as broadband expansions and EV charging stations, by imposing racial quotas and union rules that complicate execution.
Many X posts celebrate the funding pause as a necessary step to eliminate what they view as discriminatory race-based contracting, aligning with broader anti-DEI sentiments expressed in contexts like Texas transportation contracts.
Perspectives on X frequently criticize Chicago's transit leadership for appointing unqualified board members lacking transit expertise, potentially exacerbating funding issues and project mismanagement.
Users on X discuss how the Red Line Extension is seen by some as a bloated boondoggle that could burden Chicago's transit funding for decades, contrasting with its portrayal as a critical improvement for the South Side.
X conversations highlight concerns that pausing the funding disproportionately affects underserved black neighborhoods in Chicago, framing it as an act of systemic racism rather than a mere policy adjustment.

Based on 2 sources

Fox News October 03, 2025

New information:

Karoline Leavitt explicitly told reporters the pause of DOT funds for the Red Line extension and Red & Purple modernization projects was motivated by concerns about 'race‑based contracting' or DEI.
Leavitt tied the administration’s action to a broader OMB/White House process in which Russell Vought will meet with the president to recommend agency cuts or layoffs.

PBS News by Chris Megerian, Associated Press October 03, 2025