The Trump Administration has paused infrastructure projects in Chicago worth $2.1 billion, Office of Management and Budget (OMB) director Russell Vought announced 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.
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A statement from the U.S. Department of Transportation (DOT) cited an interim final rule 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.” 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 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
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, 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 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.”